On Friday the new Chancellor of the Exchequer announced what he described as a mini-budget to help deal with the cost of living crisis. The only thing mini about it was the amount of support it provides to the average family and individual in Britain. This completely un-costed budget, will give out the largest tax cuts since 1972, most of which are aimed at the wealthiest in society. That budget in 1972 lead to a short-lived boom, and a much longer bust, with the infamous three-day week and the failure of key services.
The tax cuts in this mini budget, are mainly for the super wealthy, for corporations and for the bankers. The top tax rate of 45p (%) has been completely removed, which is great news for those lucky few that earn over £150,000 a year. Corporation tax increases have been discarded, and the cap on bankers’ bonuses brought in after the financial crisis of 2008 have been scrapped.
But the Tories aren’t content with just giving handouts to the rich, they have also increased the number of Universal Credit recipients who have to actively search for work and attend weekly or fortnightly job centre appointments, if they are working up to 15 hours a week. If they don’t then their benefits will be reduced. Unsurprisingly the mini-budget also attacks trade union rights further, making it harder for working people to strike for the pay and conditions they deserve.
While they have suspended National Insurance increases and cut stamp duty, this support is minute compare to the support for those best off in society. Even in terms of energy bill support, prices being frozen where they are now, simply means they are only twice what they were last year, at the same time that the price for everything else from food to transport is increasing, while wages and benefits remain completely stagnant.
This budget does not serve the needs of the people of Nottingham, it does not help those who need help the most. People earning £20,000 will only save £167 a year. What it will do is drive Britain into an inflationary spiral. It will cause the prices of the goods that residents need to survive to increase further, at a time where benefits and wages are not rising. This will wipe out any gains that residents in the city see from this mini-budget.
The Tories say their budget will stimulate growth; it remains to be seen if it will. What is certain though is that growth in the economy is pointless if it does not lead to increased wages for the average person, if people are not supported to re-skill and obtain jobs in growing sectors, and if people do not have access to suitable affordable housing, whether that’s via home ownership or renting.
The mini budget does nothing to help achieve these aims, Nottingham Labour strongly believe that the budget will not help the people of Nottingham, it will only help a tiny minority of people. A Labour government is needed nationally to give the people of this country and of Nottingham the support and help that they need, and that they deserve.