Mixed reaction in district to today's Budget announcement

Rishi Sunak outlined how the Government plans to help the UK economy recover following the global Covid pandemic.

While he said it would focus on the “post-Covid” era, he was keen to stress that the battle with the virus is not over.

He told MPs: “Today’s Budget does not draw a line under Covid, we have challenging months ahead. But today’s Budget does begin the work of preparing for a new economy post-Covid. The Prime Minister’s economy of higher wages, higher skills, and rising productivity. Of strong public services, vibrant communities and safer streets. An economy fit for a new age of optimism.

“Where the only limit to our potential is the effort we are prepared to put in and the sacrifices we are prepared to make.”

What did today's speech include?

Some of the key announcements included a cut in the Universal Credit taper rate, bringing it down from 63 per cent to 55 per cent; the simplification of alcohol duty, with the introduction of a system designed around the principle of “the stronger the drink, the higher the rate” plus a cancellation of the planned rise in fuel duty. The Chancellor also announced a new 50 per cent business rates discount in the retail, hospitality and leisure sectors, with eligible concerns able to claim a discount on their bills of up to a maximum of £110,000.

He said healthcare spending will increase by £44bn by the end of this parliament; schools will get an extra £4.7bn; there will be funding for affordable homes; £2.6bn for more than 50 local road upgrades and more than £5bn for local roads maintenance.

On a local level, West Yorkshire will receive £830m “to transform local transport networks”, while Bradford will get a share of £187m from the Levelling Up Fund to develop the Squire Lane Leisure, Wellbeing and Enterprise Centre (see more on p5).

Meanwhile, £225,000 will be allocated to the Jubilee Centre in Bradford through the Community Ownership Fund which seeks to protect “valued community assets”. 

'A budget of smoke and mirrors' - Judith Cummins, Labour MP for Bradford South

She told the Telegraph & Argus: "As with any budget, even one so leaked in advance as this budget the devil is in the detail – and as usual with this Chancellor it is a budget of smoke and mirrors.

"However, after taking £6 billion out of the pockets of some of the poorest people in the country, the Chancellor is expecting them to cheer today at being given £2 billion to compensate. In the long story of this parliament, never has a Chancellor asked the British people to pay so much, loading the burden on working people with tax rises."

Imran Hussain, MP for Bradford East, added that previously announced plans and funding has been "re-announced to mask tax cuts for bankers and tax rises for ordinary working people".

He added: “The Chancellor should today have reversed his cruel £20 a week cut to Universal Credit, replaced an outdated business rates system, cut VAT on soaring energy bills, and guaranteed the future of Northern Powerhouse Rail with a Bradford stop. His failure to do so shows this Government cannot be trusted to deliver for working people and drive investment here in Bradford."

'Out of touch with working people'

“Whilst the rise in the national minimum wage was however of course welcome, it is still some way off what people need for it to be a real living wage that helps them keep a roof over their head, put food on their table, and pay their bills. Ultimately it shows that once again, this Conservative Government is out of touch with the needs of working people," he added.

Concern over Northern Powerhouse Rail

But, the city is still waiting for commitment to Northern Powerhouse Rail, with a new station in the city centre.

Leaders have warned that ongoing uncertainty around the project is undermining business confidence and while West Yorkshire Mayor Tracy Brabin welcomed the 830 million of transport investment, she said it was “only part of the answer”.

She said the long-awaited Integrated Rail Plan (IRP) which will set out the Government’s vision for the region’s railways, was a “glaring and disappointing omission”. 

Ms Brabin said: “There was nothing today on HS2 East, and nothing on Northern Powerhouse Rail, with that crucial stop in central Bradford. Both projects are vital to improving connections between the great cities of the North and Midlands. We’re told they are coming soon, but the watered-down versions that are rumoured are not acceptable.”

Henri Murison, director of the Northern Powerhouse Partnership, said funding for local transport schemes will be a “huge boost”, but added: “There is still a huge hole in the Government’s plans for levelling up with no clear commitment to either HS2 or a new Northern Powerhouse Rail line through Bradford in today’s speech.

“Until the IRP is published, uncertainty will continue to undermine business confidence and put a dampener on attracting investment to the north of England.”

'Devil is in the detail'
Speaking following the series of announcements, Chair of West and North Yorkshire Chamber of Commerce, Amanda Beresford, said: "The Chamber warmly welcomes the encouraging news that the national economy is forecast to return to pre-Covid levels in the coming months, markedly sooner than expected. Similarly, the projected peak of unemployment revised to a figure standing at less than half of initial worries is doubly uplifting.”

“Businesses will be particularly emboldened by the series of measures announced to support firms with their tax burden. The 50% discount in business rates for retail, hospitality and leisure is also a welcome measure that will go some way in backing three of the sectors hit hardest by the pandemic. Other moves towards business rate reform from 2023, and investment relief to encourage businesses to go green, will be well received among firms up and down the country.

“As with all Budgets, however, the devil is in the detail. £46b for rail investment is a hugely positive step by the Chancellor, and the Chamber calls on the Government to reaffirm their commitment to the levelling up agenda by backing transformative projects such as HS2 East and Northern Powerhouse Rail.”

Sandy Needham DL, Chief Executive for the Chamber, added: “There’s a series of key day-to-day improvements in the Chancellor’s announcement today. In areas of national policy, such as housing and business support, the Government have taken steps to address issues that are prevalent and holding back growth. These are positive signs and we’d encourage the Government to build pace in delivering on their commitments, particularly on regional development.”

“In order to level up areas across West and North Yorkshire, projects promised at the 2019 election must come to fruition, allowing businesses and investors alike to instil confidence in the regional economy. Connectivity is a key barrier for our cities, and so commitment, via the Integrated Rail Plan to projects like the West Yorkshire Mass Transit scheme remain important to us. We look forward to hearing of the details of the IRP soon.”

Paul Dickson, CEO and Managing Partner at Armstrong Watson Accountants, Business & Financial Advisers, said: “For families and local businesses, overall this budget is a positive and more generous one than was expected.

“The extension to a number of reliefs, such as the continued extension of the Annual Investment Allowance, and extension of business rates cut for the hospitality and retail sector are welcome.  

“The freeze in fuel duty is a welcome support for businesses at a time where we are seeing increasing costs coming from all sides.  Also welcome is the reduction of the taper on Universal Credits, as hopefully, this will provide a greater incentive for individuals to work more hours in a time where many businesses are struggling for resources, again particularly in the hospitality and retail sectors.”

He added though: “Mr Sunak’s speech was perhaps notable for what was seemingly a major omission in that it made no reference to the impact of climate change on the Government’s tax and spending plans. There was, for example, no mention of where the estimated £10bn that will need to be provided over the next three years to insulate homes if the Government is to meet its own climate change targets.”