The Chancellor’s mini budget has divided Bradford’s political leaders amid claims that it “disproportionately benefits the rich” while families worry about heating.
Chancellor Kwasi Kwarteng announced the biggest raft of tax cuts for half a century, in a “gamble” to raise falling living standards by boosting growth.
Labour MPs branded the budget “by the rich, for the rich” while one Conservative MP argued it will create a “transformational shift” for the economy.
Using more than £70 billion of increased borrowing, Mr Kwarteng’s package included plans to abolish the top rate of income tax for the highest earners, reverse the national insurance rise and axe the hike to corporation tax.
He cut stamp duty for homebuyers, brought forward a cut to the basic rate of income tax to 19p in the pound to April, and scrapped the cap on bankers’ bonuses.
The Chancellor announced he would encourage around 120,000 more people on Universal Credit take active steps to seek more and better paid work, or face having their benefits reduced.
Among his supporters is Robbie Moore MP (Conservative, Keighley and Ilkley), claiming “economic growth and cost-of-living support is at its heart”.
Speaking on Friday, Mr Moore said: “The Chancellor’s Growth Plan means residents across Keighley and Ilkley will have more money in their pockets to help deal with the current cost-of-living challenge.
“The Plan enables businesses across our area to unlock their potential to go on, grow and thrive. A low tax economy is essential for creating growth, attracting investment and making our business sector more competitive, all of which gives businesses the best chance of maintaining and creating jobs across our area.
“Today’s tax cuts and support for businesses come on top of the household Energy Price Guarantee set out by the Prime Minister earlier this month which aims to cut a typical energy bill by £1,400 this year, protecting many families across our area.
“I also welcome the Chancellor’s plan to launch Investment Zones across England, which will drastically reduce taxes for businesses, and support local economies that have been left behind for too long.
“The Chancellor's plan puts economic growth and cost-of-living support at its heart. This is one of the most significant economic interventions in peacetime.”
But Judith Cummins MP (Labour, Bradford South) said: “While people in Bradford worry about heating their homes this winter, the Chancellor announced tax cuts that disproportionately benefit the very rich and has opened the door for bigger bonuses for bankers.
“The question I am asking is: who pays for the energy prize freeze that is so desperately needed? I say it should be the energy companies who are making huge profits from this crisis, but the government have put the burden on working people for years to come.
“The government are choosing to ignore the real problems my constituents are facing. Instead of long overdue investment in our cities and communities, and a long-term strategy for business and energy security, they have added tens of billions of un-costed public borrowing.
“The Chancellor tried today to tell us that a ‘new era’ was beginning, but after 12 years of Tory economic failure, the people of Bradford South may well be questioning the economic competence of this government.”
It comes after a YouGov survey found nearly two thirds of people think Mr Kwarteng’s tax cuts will benefit the rich more.
Of around 9,400 adults surveyed, just 3 per cent believe the budget will help poorer people more.
Naz Shah MP (Labour, Bradford West) said: “There is only one explanation for this budget, and it is that this is a Government of the rich, by the rich, for the rich.
“At a time when families are genuinely choosing between eating and heating, household incomes are seeing the biggest squeeze in a century, this government's response was to uncap banker’s bonuses and tax cuts for the wealthy few.
“Almost every indicator so far has shown this is a mini-budget for the super-rich, ignoring the needs of working families in cities like Bradford.
“Every time we think things can't get any worse, another Conservative government manages to make things even worse.
“After 12 years of consecutive Conservative governments, six plans to push economic growth, we still have low growth. The reality is there is no new era for the Conservatives, just the same old promises, and the same old failed policies.
“Things need to change, and it starts by getting rid of this Conservative government.”
Tracy Brabin, Mayor of West Yorkshire and the former Labour MP for Batley and Spen, added: “We have ambitious plans to make West Yorkshire an even better place to work, live and start a business, so I’m keen to work with Government to help deliver growth. However, this must be done in a way that is fair, inclusive and works for everybody in the region.
“Sadly, the tax measures announced today will give far more back to people who are already earning more, and choosing to penalise low-paid workers on universal credit, such as carers, feels like the wrong choice to make during a cost of living crisis.
“I’m pleased to see the Chancellor reaffirm the Government’s commitment to major transport schemes in our region, including mass transit for West Yorkshire and an upgrade to the TransPennine route. These schemes are vital if we’re to improve services and meet our carbon target of Net-Zero by 2038.
“However, the Prime Minister promised during her leadership campaign to deliver Northern Powerhouse Rail in full, highlighting the benefit for Bradford in particular, and today’s rail announcement falls far short of that promise.
"Accelerating existing proposals is not the same as delivering on long-promised plans, and we remain clear that delivering Northern Powerhouse Rail in full means building a new line between Manchester to Leeds with that vital stop in Bradford, and a new line from Leeds to Sheffield to enable HS2 trains to reach Leeds.
“Plans for Investment Zones to encourage businesses are welcome, and I look forward to receiving further details. However, economic growth requires hard work and collaboration between the public and private sector. For this to be successful and deliver more well-paid jobs across our region, it must come with public investment and local decision-making.”
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