Mini-Budget: "Voodoo economics" v Rewarding hard work with low taxes

WARRINGTON’s two MPs Charlotte Nichols (Lab) and Andy Carter (Con) have given their differing opinions on the largest mini-budget for 50 years.

Ms Nichols, MP for Warrington North, described it as “Voodoo economics”, while Mr Carter, MP Warrington South, said it showed Britain was open for business and willing to reward hard work with low taxes.

Ms Nichols said: “After months of a zombie, do-nothing government, they have finally announced their plan for the country’s problems: voodoo economics. After 12 years of Tory government failing to invest in our public services when borrowing was cheap, they have now decided to borrow tens of billions of pounds just as interest rates are heading up: no wonder the pound took a hit on the markets.
“And rather than using this cash to invest in our schools, hospitals and transport, it is being used to fund huge giveaway tax cuts to the wealthy, scrapping both caps on bankers’ bonuses and the top rate of tax altogether. From that alone someone earning £ 1 million a year will get a tax cut of £40,000 annually – more than the entire salary of most teachers, nurses and police. For most people the savings if any will be wiped out by the high inflation that we are all experiencing.

“The plan to cap energy costs gives some short relief, though still at a much higher rate than before. But rather than getting the oil and gas companies to pay for this out of their vast windfall profits, the government is borrowing billions and will be adding them on to our future energy bills. Businesses have only been given a six-month support plan, and there is nothing extra for the particular costs of the hospitality sector. This will cost us all so much more in the long run.

“Our country is desperate for a real plan in these tough economic times. Instead, the Chancellor is throwing money at the wealthy in the hope that the rest of us will see some benefits trickle down to us. This is both risky and unfair and was not what was presented at the last general election. If the Tories want a mandate to pursue this, they should put it to the people by calling another election now,” added Charlotte.

Meanwhile, Mr Carter said: “Having the Government focused on economic growth, boosting wages and helping people keep more of their hard-earned money by lowering taxes, is our best way to help us navigate through challenging economic times.
“With the Energy Price Guarantee and reductions in personal taxation, a typical person living in a semi-detached property in Warrington can expect to save £1,150 on their energy bills and if earning £30,000 an additional £400 on tax. Cuts to stamp duty will also save someone moving typically around £2,500.

“Rising energy prices and cost of living pressures, caused primarily by Russia’s invasion of Ukraine, mean we need to take extraordinary measures to support families and help the economy grow. The Chancellor’s announcement today is a sign that Britain is open for business and willing to reward hard work with low taxes.”