Statement on the Autumn Budget
This is the first Labour budget since 2010, and without a doubt expectation and the needs of the country are high in what are very challenging and concerning times. The austerity programme the Conservatives initiated in 2010 has, I believe, wrought havoc on communities.
The Conservatives crashed the economy, sending mortgages through the roof, and then called an early election to avoid having to deliver this Budget. They wasted billions of pounds of taxpayers’ money on their failed asylum system, propping up private rail companies and dodgy COVID contracts leaving a void of £22 billion in the nation’s finances and public services on their knees.
As such while I recognise and wholeheartedly emphasise there is disappointment and anger at some of the policies that must be implemented to address the financial black hole, I consider the Autumn Budget fixes the foundations to deliver the change the country drastically needs. This change will fix the NHS and rebuild Britain, while ensuring working people do not face higher taxes in their payslips.
It is widely known that my office receives most casework enquiries on housing, and this is an issue I have many times over the years raised in Westminster, locally with the council and Stockport Homes. The pressure on the social housing waiting lists continues to increase at the same time the private sector rents rise to an extortionate level. Regentrification in Stockport is preventing people from being able to afford safe and good quality housing. As such I welcome the fact this Autumn Budget sets out the Labour Government’s intention to build a new generation of social housing. There will be at least 10,000 built in this Parliament.
In addition, this Labour Government is ensuring money is available to right some of the injustices of the past. Compensation payments will be fully recognised for victims of the Infected Blood and Post Office Horizon IT scandals. This Budget provides for the victims in full, at an average cost of £2.3 billion a year over six years.
I regret that the Women Against State Pension Inequality (WASPI) have not received any compensation within this budget. They continue to be severely impacted by the changes to the increase in pension age. I will continue to make the case for compensation to be paid to my colleagues and Ministers in Government.
To restore Britain’s stability tough decisions need to be taken but I support the Government’s balanced approach, which includes: -
£25.6 billion over two years for the NHS, to cut waiting times with 40,000 extra elective appointments a week, and build capacity for more than 30,000 additional procedures.
Adjusting the rate of Capital Gains tax, a tax paid by fewer than 1% of adults each year. The rate will change from 10% to 18% on the lower rate and 20% to 24% on the higher.
Making the inheritance tax system fairer by keeping thresholds at existing levels until 6 April 2030, and bringing unused pension funds and death benefits payable from a pension into the scope of inheritance tax, making their treatment consistent with other products, such as ISAs.
Increasing the rate of Employer National Insurance Contributions by 1.2 percentage points to 15% and reducing the Secondary Threshold from £9,100 to £5,000 per year. In making this choice, the government is also choosing to protect small businesses by increasing the Employment Allowance to £10,500 and expanding this to all eligible employers. The OBR expects 250,000 employers to gain from these changes and an additional 820,000 will see no change.
This is alongside previous tax commitments to abolish the non-dom tax loopholes; reform Stamp Duty Land Tax so those who buy second homes pay 2 percentage points more than before; extend the Energy Profits levy on oil and gas companies; and end the VAT exemption and business rates relief provided to private schools.
I welcome the long-term decisions needed to grow our economy to rebuild Britain and fix our failing infrastructure.