Derbyshire council argues Chancellor’s budget offers ‘crumbs’ despite claims of ‘fresh hope’

Government Chancellor John Healey Was Joined By East Midlands Mayor Claire Ward At The Autumn Budget Announcement. Courtesy Of East Midlands Combined

Derbyshire Labour MPs and the East Midlands Mayor welcomed the Chancellor’s autumn budget with ‘breathing space’ and ‘fresh hope’ but the county’s Reform UK council has accused John Healey of offering only ‘crumbs’ in a failed bid to tackle big issues like the economy.

Chancellor John Healey’s budget on October 28th offered relief on energy bills and business rates, support for mayors and apprentices, and £1.5bn of funding for social or council housing and affordable homes, as well as support for homeless people and first-time buyers.

However, critics are concerned the Labour Government has failed to fully address high borrowing and national debt, the cost of living, high inflation, welfare costs, and defence needs during global unrest.

Mr Healey told the House of Commons: “We know who we are, we know where we are going, we can see the Britain we want it to be.”

He added: “Breathing space now, fresh hope for the future delivered by this Labour Government to the people of Britain.”

However, Reform UK-led Derbyshire County Council’s Cabinet Member for Finance and Efficiency, Cllr John Lawson, said he could see nothing in the budget to reverse economic damage and he argued the plans will not tackle unemployment, inflation and the economy.

Mr Healey claims his budget introduces longer term reforms to make Britain more resilient from the global shocks of the wars in Iran and the Ukraine affecting fuel prices and world economies.

He added changes will include scrapping standing charges on gas bills and VAT on electricity bills, mayors getting more funding with devolved powers and control to reinvest, paid parental leave for self-employed fathers and partners, and business rate reforms to support the High Street.

The Chancellor stated that 20 million households in A to D council tax bands in England will receive a £100 ‘household energy payment’ to help ease the strain of rising energy bills.

Mr Healey also announced banks, gambling businesses and vape shops would be taxed and there would be improved HMRC tax collection enforcement, and a new tourism levy would all help support people, High Street shops and the economy.

He said: “This Labour Government is determined to make this Government work better for all families.”

Mr Healey added: “Providing support for British families and businesses has meant raising some tax to support fiscal discipline.”

However, Cllr Lawson claims that since Labour came to power, they have significantly added to inflationary and taxation pressures by increasing burdens on business and individual tax-payers.

He said: “Labour’s third budget, while appearing on the surface to be less damaging than their first two, did nothing to reverse any of that damage.

“It added yet more bureaucracy for the productive economy to deal with, by adding yet more tax code complexity to what is already the most complex tax code in the world, by some margin. Only tax accountants and lawyers will be licking their lips after today.”

Cllr Lawson argued that combined minimum wage rate increases and Employer National Insurance contributions have increased the costs of employment by 12 per cent over and above the Consumer Price Index since Labour came to power.

He claims the cost of employing someone aged 18-20 has increased by 32 per cent over and above CPI since Labour took control arguing this is the main driver for the number of NEETS – those Not in Education, Employment, or Training.

He added: “None of these seismic issues created by Labour have been tackled by this budget, and so they will continue to fuel inflation and unemployment, which in turn will increase the pressure of out of work benefit claims, negatively impacting the Government’s deficit, despite rosy Office of Budget Responsibility forecasts that we know will never come to pass.”

County Council Leader, Cllr Graves, raised concerns the Government is changing the triple lock for pensioners and that former miners will still have to wait for a full £1.2bn payout regarding their fight for a surplus on the Miners Pension scheme to be returned to them.

He said: “This Budget gives Derbyshire crumbs, not a plan. Labour is handing their mayor the power to tax visitors to the Peak District.”

However, Chesterfield Labour MP Toby Perkins argued the budget is focussed on the economy and reducing unemployment, creating jobs, and getting young people into work, education and training and he described it as a sensible budget for working people that will take some pressures off households.

Mr Perkins argued small measures will have a big accumulative impact for families and workers, and despite criticism defence is overlooked he welcomed ‘full funding’ of the Defence Investment Plan with defence spending aiming to reach three per cent of GDP by 2030 but he feels more is needed.

He said: “In an increasingly uncertain and changing world, the Labour government is steadying the ship and charting a fair and hopeful route through for Britain.”

Mr Perkins also welcomed the increase in the threshold at which High Street shops start paying business rates from £12,000 to £18,000, meaning the majority of Chesterfield businesses will pay no business rates.

NE Derbyshire Labour MP Louise Sandher-Jones welcomed support for people and businesses in the fight against the cost of living.

She added: “For areas like ours in particular, the changes to fiscal devolution will ensure tax revenues stay local.

“By 2030, 100pr cent of business rates will remain where they are generated, allowing the East Midlands to benefit from the success of our incredible local hospitality and retail businesses.

“This Labour Budget has taken decisive steps to tackle the cost of living, back British businesses, and provided a hopeful vision for the future.”

Erewash Labour MP Adam Thompson also welcomed Government support with energy bills and with business rates helping High Street shops.

He said: “People in Ilkeston and Long Eaton want to see their town centres thriving again. This Budget is a really positive step towards making that happen, putting more money into people’s pockets and supporting the local businesses at the heart of our communities.”

High Peak Labour MP Jon Pearce described the budget as ‘hugely positive’ and reflected the strength of the economy in an unstable world and that Mr Healey has been listening to people about the challenges they face.

He said: “I think the UK is in a strong place. We need to be in the driving seat when the wars end. If you look at similar countries to us we are well-placed.

“We have struggled with productivity but that is moving in the right direction and we have struggled with private investment but these things are up.”

Mr Healey argued different regional authorities, such as the East Midlands Combined County Authority, which successfully invest Government funding should be entitled to keep proceeds to reinvest in their good work.

He announced EMCCA and regional mayoral authorities will keep 20per cent of business rates and a share of income tax to spend on local priorities and will benefit from £2.85 billion in local leader funding.

Labour East Midlands Mayor Claire Ward also praised a £2.5 billion investment for Rolls-Royce, which has a base in Derby, to develop the next generation of jet engines.

She said: “I am also delighted the Government is funding £100m nationally into a local apprenticeship service to match young people to employers, as well as increasing the small business rates thresholds, which will provide much-needed breathing space for many firms in the East Midlands.”

Mr Healey also confirmed £1.2 billion for the TransPennine Express Alstom train project.

Ms Ward stated that measures in the budget have the potential to support people, businesses and jobs across the East Midlands.

Derbyshire County Council Opposition Liberal Democrat Group Leader, Cllr Tom Snowdon, said the budget included a lot of ‘small tweaks’ but ‘no concrete steps’ to address major economic challenges.

He added: “I would like to have seen solid steps taken to strengthen the UK economy and improve trade with Europe.

“It was also disappointing that yet again there were only words on committing to three per cent of GDP for defence spending, but no detail on how much would be committed and where the funding would come from.

“Small sweeteners to the electorate, but no real political nettles were grasped.”

Opposition Conservative Party Leader Kemi Badenoch criticised the budget for failing to keep welfare spending, national borrowing and debt down and  failing to fulfil defence funding needs with global threats posed by events in the Middle East and Ukraine.

Green Party Leader Zack Polanski was concerned that there was little mention of climate concerns in the budget but Mr Healey did stress the Government is working towards meeting carbon emissions targets by 2050 as part of Net Zero plans.