REDDITCH MP Rachel Maclean has welcomed Chancellor Rishi Sunak’s Budget which she says will ‘protect jobs, livelihoods and support Redditch’s recovery’ from the impact of the coronavirus pandemic.
She said at the heart of the Budget were measures to build the future economy, levelling up across all regions of the UK and spreading opportunity everywhere.
However Redditch Labour County Councillor Robin Lunn, an independent financial advisor, said the Budget heralded income tax increases for virtually everyone for the next five years.
In a statement Mrs Maclean said the Budget confirmed:
1. An extension of the coronavirus Job Retention Scheme until the end of September with two further grants available to self-employed people – and the newly self-employed will also be eligible for both grants.
2. A continuation of the temporary Universal Credit uplift for a further six months. The Budget also confirms new support for providing young people with new skills: including doubling the incentive payment to SMEs to take on apprentices of any age to £3,000, and £126million to triple the number of traineeships next year.
3. New Recovery Loans and a new Restart grant of up to £18,000 to help businesses as they reopen. Support for the sports, arts and culture sectors will also be increased by £700million.
4. Extending the business rates holiday, VAT cut and stamp duty holiday.
5. Opening up the new Levelling Up Fund for its first round of bids, worth £4.8 billion across the United Kingdom. District Councils, including Redditch, will be able to bid for up to £20 million from this fund. This is on top of the Town Deal bid Redditch has submitted for up to £25 million.
6. Launching the first ever UK Infrastructure Bank – located in Leeds – to invest in public and private projects to drive green growth and create green jobs.
7. A new Help to Grow scheme to boost productivity of small businesses, to ensure they are embracing the latest technology and management training.
8. Being honest with the British people about the need to fix the public finances. We are standing by our manifesto pledge not to increase Income Tax, NICs or VAT and we are freezing alcohol duty, and fuel duty for the 11th year in a row. However to fix the public finances, corporation tax on large company profits will increase to 25 per cent in 2023. This will be tapered and 70 per cent of businesses will be completely unaffected.
Mrs Maclean said: “This is Budget will protect jobs, livelihoods and support Redditch’s recovery from the impact of this pandemic. It ensures my constituents and local businesses continue to receive the support they need.
“However, with £407bn of support for families, jobs and businesses, it is also right the Chancellor is honest with my constituents about our public finances.
“But, as we look ahead, this will be an investment led recovery and independent experts tell us our economy will bounce back faster than first thought.
“We will see this investment led recovery here in Redditch with the Super Deduction Tax, allowing businesses to claim 130% of their new machinery cost as a tax cut.”
Councillor Robin Lunn (Redditch North), the Leader of the Labour Group at Worcestershire County Council, while welcoming some aspects of the Budget, likened one key part ‘to gradually boiling a frog’.
Coun Lunn, who is an independent financial advisor with East Mills Ltd said: “The Budget freezes personal allowances for five years.
“By doing this you are bringing more people into paying income tax at the lower end and more people paying the higher rate as pay increments take them up the scale.
“I use the analogy of gradually boiling a frog because you don’t realise it’s happening until it’s too late, but it effectively means tax increases year-on-year for virtually everyone for the next five years.
“The extension of the furlough scheme, stamp duty holiday and the continuation of the £20 uplift in Universal Credit – which we have been calling for for months – are to be welcomed, however the government has once again failed to address the issue of paying for adult social care.”
