SPRING BUDGET: THE VERDICT
Since my election as the MP for Sedgefield, I’ve seen my fair share of budget statements.
While some pass with little excitement, others have triggered dramatic political events.
And while daily life continues with little disturbance for hardworking citizens across the country, in the Westminster Bubble, the Spring Budget is THE political event of the year.
As I write this piece, I am surrounded by a flurry of scurrying, hot-footed political advisors eagerly trying to hash out which political lines they will take in order to effectively sell the Chancellor’s Budget to an eagle-eyed public.
The atmosphere here in Portcullis House— the building where MPs work—is charged with both excitement and trepidation. With 18 months to the next general election, the stakes could not be higher.
Indeed, the Budget is not only used by the Chancellor to update parliamentarians and the public on the health of the economy, it also allows him to set out the Government’s tax and spending plans for the coming fiscal year.
For the Government to act on its spending commitments, it must first require parliament’s approval for spending.
Trust me when I say, MPs will be spending the rest of the week going through the details of the Budget with a fine-tooth comb. If the numbers don’t stack up, we will know.
See, when I was elected in 2019, I was determined to be a champion for the people of Sedgefield. However, let me level with you, there have been times when it has been incredibly difficult to get heard above the raucous political noise.
Nonetheless, having just returned from the Chancellor’s budget statement, I am renewed with a sense of optimism for the future, as we press ahead with our programme to get the economy back on track.
The disease of inflation, accompanied with surging energy prices following Russian’s barbaric invasion of Ukraine has threatened the livelihoods of millions. But the Government has stepped up and rose to these unprecedented challenges.
As politicians, there is a temptation to sugarcoat reality. The Chancellor has always resisted such temptation when it comes to the nation’s finances and that’s why I respect him. When he assumed office at the end of last year he was straight with the public— the only way out of this economic fever would be through making difficult decisions and having a strict adherence to the economic principles he outlined.
Thankfully we have stayed the course and are now starting to see signs of economic recovery.
The plan is working— inflation is falling, debt is down and our economy Is growing. We must now remain focussed.
Now, as your MP, you deserve to know what I think about the world measures announced. Therefore, I will use this piece as an opportunity to provide an in-depth analysis of the budget and what I think it will mean for my constituents.
Top of the list is the Chancellor’s announcement of 30 hours of free childcare for every child over the age of 9 months. In my opinion this is a huge victory for working families, especially since the extortionate cost of childcare is a major obstacle to many skilled and experienced mothers returning to the workforce.
I am also pleased to see that the government will also pay the childcare costs of parents on Universal Credit moving into work or increasing their hours upfront, rather than in arrears – removing a major barrier to work for those who are on benefits. As a result of this the maximum they can claim will also be boosted to £951 for one child and £1,630 for two children – an increase of around 50%.
The Chancellor went on to outline his plans to continue to support households with cost-of-living pressures including keeping the Energy Price Guarantee at £2,500 for the next three months and ending the premium that over 4 million households pay on their prepayment meter. As you will know, I have been lobbying ministers for months to end this injustice. Prepayment meters have been a real issue for those on low incomes in Sedgefield and they certainly shouldn’t have been paying more for energy than those paying via direct debit. This is a victory for fairness and common sense.
Taken together then, these measures bring the total support to an average of ÂŁ3,300 per UK household over 2022-23 and 2023-24.
To help household further, the planned 11 pence rise in fuel duty will also be cancelled— hooray! Therefore, the government will be maintaining last year’s 5p cut for another twelve months, saving a typical driver another £100 on top of the £100 saved so far since last year’s cut. Suffice to say, it won’t just be drivers who benefit from this, but also many of our local businesses who have been grappling with the surge in energy following the war in Ukraine.
In recent months, many constituents have also contacted me about Alcohol Duty. That’s why I am pleased that the Chancellor has announced that draught beer Duty will be cut helping our pubs. These measures will rightly put money back in the pockets of the public and help our much-loved publicans.
The Chancellor further set out a comprehensive plan to remove the barriers to work facing those on benefits, those with health conditions and older workers. An increase in the pensions Annual Allowance from ÂŁ40,000 to ÂŁ60,000 and the abolition of the Lifetime Allowance will remove the disincentives to working for longer.
As I’ve said in the Commons, you can judge a country by the way it treats its veterans. That’s why I warmly welcome an additional £33 million to help our heroes with specialist care for physical injuries. This funding will also help veterans access housing, with additional support to help veterans with specialist care for physical injuries. I know the Newton Aycliffe Veterans Hub will be delighted with this news.
Finally, of the many announcements made by the Chancellor today, I am most excited about plans to establish up to 12 investment zones across England which will benefit from tax cuts and speedier planning rules.
As I understand it, each zone will offer generous, targeted and time-limited tax cuts for businesses, backing them to increase productivity and create new local jobs. This will encourage investment in new shopping centres, restaurants, apartments and offices – creating thriving new communities.
As part of this package, a ÂŁ80m Investment Zone for Teesside has been SECURED.
Fundamentally, I believe that the measures announced in today’s budget should be welcomed with open arms. As PPS to the Treasury, I can clearly see where the concerns of my constituents have been translated into national government policy.
While a number of the measures contained within the statement rightly focus on creating a positive business environment conducive to growth, it is ultimately a victory for hardworking people. Therefore, the Spring Budget breaks down barriers to work, unshackles business investment and tackles labour shortages head on. I support it wholeheartedly and I believe my constituents should too.
Thankfully Britain is now on a lasting path to growth with a revolution in childcare support, the biggest ever employment package and the best investment incentives in Europe.
You’ve read my thoughts, now I want to hear yours! If you would like to contact me about today’s announcements, or anything, please contact me on: 0207 219 3000 or email me on [email protected]
