Today the Chancellor will deliver the first budget of the new Labour government and it is certainly set to be historic. It is widely expected to include the biggest tax rises in modern history and ministers look set to impose a jobs tax – breaking their election promise not to increase taxes on working people.
Borrowing is also going up. The Chancellor has confirmed she will change the rules on borrowing – again that is directly contrary to the pledge she made in the election campaign. It is expected this could allow for an extra £50 billion of borrowing. Economists warn that higher borrowing leads to higher interest rates and means mortgages could cost more.
It is concerning that a government that professes to have economic growth as its priority is going to increase taxes on business and investment. Those measures will come on top of the £4.5 billion a year of extra costs Labour's union style laws will impose on employers. Little wonder Lloyds Bank’s business survey this week showed business confidence has fallen.
Fuel duty has been frozen for over a decade and increasing it would disproportionately hit people in rural areas including North West Norfolk who need their cars to get around, small businesses, hauliers, charities, and more. That’s why I’ve joined other MPs calling on the Chancellor to stop fuel duty hikes in the Budget.
I do welcome the funding that has been announced for school buildings and the new school rebuilding programme set up by the last government. I worked with Smithdon High School which was selected as one of the schools to benefit and those plans are moving ahead with planning permission expected to be applied for soon.
With more money for the NHS, I will be listening to the Chancellor to see if there is progress on the New Hospital Programme and QEH’s plan. However, it is important that extra funding going into the health service is based on delivering improved productivity which is below Covid levels. There was a NHS productivity plan in place which the government inherited and now needs to implement.
Another area where the government should be investing is prisons. 1,100 prisoners were let out early last week due to overcrowding despite being convicted of serious violence and other offences. I challenged the Lord Chancellor in Parliament to ensure the review of sentencing she has launched looks at how to ensure maximum sentences passed by Parliament such as causing death by dangerous driving are used by judges are the places are available.
During the general election campaign Labour said they had a fully costed and fully funded manifesto. The Prime Minister pledged not to increase taxes on working people. Well, today that promise is set to be shattered with a jobs tax hitting millions of people. People voted for change, but was this the change they wanted?
