‘Far too late for households’ says MP as bills frozen until 2026

Last week’s Budget Day felt like a roller-coaster, with more than a few shocking moments, from the ever-shifting size (and even existence) of the so-called “black hole” to the leak of the OBR report, which left us all staring in shock at the ending, before the Chancellor even stood up to speak.

Because Labour was elected on a promise of tackling the cost of living crisis and growing the economy, yet this Budget leans heavily on tax rises that will hurt.

The Chancellor announced that Income Tax thresholds will stay where they are, even as wages rise, dragging in 10 million taxpayers, many low-paid or pensioners, to raise a record £67 billion for the Treasury.

This will pile more pressure on ordinary people in North Devon while ducking the big decisions like investment in our hospital or support for family farms.

There was some fleeting good news for small businesses, like lower business rates for over 750,000 smaller firms, making big online gambling firms pay more, and some help on energy bills.

But, as ever, the devil is in the details.

Energy bills will not fall until 2026, far too late for households already counting every penny. The Government refused to fully support small businesses and hospitality with a cut to VAT for the sector until 2027, and there is still no sign of any serious
attempt to fix our trading relationship with Europe.

In North Devon, many people were watching closely for what this Budget would mean for farms - and they watched in shock as the government continued to press ahead with the crushing family farm tax, ignoring the consequences for rural areas.

On Budget Day, I stood alongside thousands of farmers from North Devon and across the country as they once again protested this policy, and I joined colleagues in speaking up for their cause. They told me plainly that the Government has turned its back on them and that they are now deeply worried about the future of their farms. This policy risks forcing many family farms in North Devon to close their gates for good.

At the same time, the Government has chosen to reject the single biggest step it could take to turbocharge economic growth and start to repair the £90 billion Brexit black hole: fixing our trading relationship with Europe.

That remains untouched.

This is a Budget from a Chancellor who sees the problem but won’t fix it. Living standards are still being squeezed, and the Government’s own watchdog says tax rises are continuing to hit families.

I will continue to push for the real change people in our area were promised, including energy bills to be slashed sooner and more aggressively, an emergency VAT cut for small businesses and hospitality, and a reversal of the family farm tax.
The pound may have stabilised, and borrowing costs currently down... but we can't tax our way to economic growth.