THE new Chancellor, Jeremy Hunt, moved quickly to deal with the issues created by the ‘mini budget’ last month. He provided immediate stability in the markets by largely reversing most of it.
We need to borrow less and he made it clear taxation will increase as we grapple with the effects of the pandemic, the war in Ukraine, inflation and high spending for things like covid vaccines. I cannot condone what has happened. The Government got this badly wrong. Not in its desire to promote growth – that I fully support – or even in some of the individual policies, but in the political timing and communication around its announcements.
The lack of facts and figures to back up the plans was always going to cause problems. The market jitters and increased borrowing costs were unnecessary in my view. I am angry that there has been an impact on some local people with mortgages even though interest rates were already rising.
First and foremost, the popular energy price guarantee will continue. It will be reviewed in April next year and not in 2024. After 2023, how the government supports people may be targeted to help those who need it most - a sensible way forward.
The cut in income tax to 19p has been reversed and corporation tax will again rise in a tapered way up to 25% as planned. The reverse in the rise of National Insurance has been retained. The new chancellor was clear that there will be further incredibly tough decisions ahead.
The Prime Minister remains in a very difficult position. In fairness, she fully understood the problems this country faces around low productivity and high taxes stifling growth. However, I think she failed to recognise the political and economic realities and balance that was needed to deal with them.
It is also fair to say these issues are not unique to the UK. Across the world, the era of cheap money is over. Many countries have lived beyond their means and face similar or even greater problems.I will continue to fight for Stroud and I’m grateful to those who have shared their views in these challenging times.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel