Sunak’s ‘tone deaf Statement’
With inflation approaching a 30-year high, Chancellor Rishi Sunak hoped to soften the blow for British families with a range of measures.
Unveiling his Spring Statement ‘mini budget’ to the House of Commons, the Conservative spending chief confirmed a widely predicted 5p per litre cut in fuel duty due to come into effect from 6pm on Wednesday and last until March next year.
Plans to reduce income tax from 20 pence in the pound to 19, by 2024, were among the surprise policies announced, while the threshold for paying National Insurance is to increase by £3,000 from July.
But the moves have prompted criticism that the government is not doing enough to address an escalating cost of living crisis.
“Even after the changes today, under the Conservatives, Britain is facing the highest tax burden in 70 years, with the Chancellor confirming £24 billion of additional tax rises about to hit,” said Bridget Phillipson, MP for Houghton and Sunderland South and shadow education secretary.
“People in Sunderland will
see right through the hollow cynicism of raising taxes now only to reduce them later.
“The Chancellor is fooling no one.”
The Institute for Fiscal Studies, a think tank, has warned the Chancellor has failed to help the “very poorest”, predicting the biggest hit to living standards since the 1950s.
Following the statement, Sunak claimed the new measures announced would see 70% of workers paying less in National Insurance contributions, as well as warning sanctions on Russia following its invasion of Ukraine would not be “cost-free” for the UK economy.
Phillipson’s fellow city
MPs,SharonHodgsonandJulieElliott,echoedhercriticism.
Hodgson accused the government of “leaving households and businesses to fend for themselves”, while Elliott said ministers had missed an opportunity to squeeze oil and gas firms enjoying increased profits as a result of the cost of living crisis.
Graeme Miller, leader of Sunderland City Council, added: “The Spring Statement is absolutely tone deaf.
“To deliver a mini-budget, which increases taxes on working families, yet fails to address the ever-spiralling cost of living crisis, shows just how serious this Government is about ‘levelling up’ cities such as Sunderland.”