On 30 October, the Chancellor delivered the first Budget of the new Government.
As the Chancellor set out, the new Government was handed a challenging inheritance from the previous Government: £22 billion of unfunded in-year spending pressures, debt at its highest since the 1960s, unrealistic plans for departmental spending, and stagnating living standards.
I therefore support the Government in its commitment not to shy away from taking the difficult decisions on tax, spending and welfare to restore economic and fiscal stability – including through new fiscal rules – so that it can invest in the country’s future and achieve its mission for growth.
I welcome that the Budget ensures working people will not face higher taxes in their payslip, with no increase in National Insurance, the basic, higher, or additional rates of Income Tax, or VAT. At the same time, this means asking the wealthiest and businesses to pay their fair share to increase funding for public services, so we can fix our NHS and cut hospital waiting lists.
From April next year, over 15,000 people in County Durham will benefit from the increase in the minimum wage confirmed by the Chancellor – equal to a £1,400 pay boost for a full-time worker on the National Living Wage.
I am particularly pleased that former mineworkers, including XX North Durham residents, will receive £1.5 billion of money that has been kept from their pensions.
I also welcome the Government’s commitment to reforming the approach to funding allocations for local councils to ensure they properly reflect need and local revenues.
I am pleased that the Budget’s major focus is on investment so we can get the economy moving again. It will help rebuild Britain by boosting public investment by over £100 billion over the next five years, while keeping debt on a downward path, with a greater focus on value for money and delivery to help unlock long-term growth.
I also welcome that by repairing the public finances and restoring economic stability, the Budget can deliver a new settlement for public services, increasing day to day spending by 3.3% on average in real terms over this year and next. This includes an extra £22.6 billion over two years for the NHS, to cut waiting times with 40,000 extra elective appointments a week and supporting the recruitment of 6,500 teachers by increasing the core schools budget by £2.3 billion next year.
This is a Budget that opens a new chapter for our country, putting more pounds in people’s pockets, fixing the NHS and investing in Britain’s future.
