We have just seen a catastrophic budget delivered by a Labour Chancellor.
Billions extra in borrowing. £40bn in tax increases.
The fastest growing economy in the G7 now with lower growth forecasts as a direct result of the budget. An economy where inflation was back at 2% now showing higher inflation projections for the next few years as a direct result of the budget.
It is a budget that has attacked the engine of growth – British businesses. Thousands of businesses now facing crippling increases in National Insurance contributions which will directly impact jobs and wages. It is on top of the Government’s own assessment of £5bn impact on businesses of their employment law changes. After record employment levels over the last 14 years, we now face a serious risk to our jobs market.
It is a budget of broken promises. The Chancellor said she wouldn’t raise national insurance, but she has. The Chancellor said she wouldn’t raise tax on working people, but she has. The Office for Budget Responsibility has said that they have downgraded their view of disposable household income as direct result of the employer national insurance tax increase. Promise broken. The Chancellor said she wouldn’t fiddle the fiscal rules, but she has done just that. Promise broken.
The Prime Minister said there would be no surprises on tax, but he has landed business with £25bn of new taxes, Capital Gains tax up, Inheritance tax up, agricultural property relief lowered to such a level that the family farms are now at risk and much more. Promise broken.
I am deeply concerned about the impact of this budget and I know that there will inevitably be more pain hidden in the small print. Over the next few days I will be focused on listening to how residents and businesses across Beaconsfield, Marlow and the South Bucks villages feel this budget has impacted them.
I intend to do all I can to hold the Labour Government to account for this budget of higher tax, higher borrowing and broken promises.
Please do share your thoughts on the budget with me.
