After returning from the party conferences, October saw another busy month in Parliament as the Autumn Budget grew ever nearer. And having spent the election campaign and months since warning of Labour tax rises, we were greeted by a budget full of broken promises which will harm workers and businesses alike.
In my previous role as Financial Secretary to the Treasury, I oversaw two cuts in National Insurance contributions (NICs), benefitting some 29 million people including tens of thousands across Worcestershire. The cuts were delivered without an increase in borrowing or a reduction in spending due to the previous government’s sound economic management and represented a significant reduction in the overall tax burden – which is now set to rise to the highest level in our country’s history under this new Labour government.
During the election campaign the Labour Party promised not to raise taxes on working people and yet the Chancellor has increased the rates of employer NICs in a clear breach of manifesto commitments. The Office for Budget Responsibility (OBR) has said that the rise in employer NICs will be passed entirely onto working people through lower pay and, in some cases, redundancies – a broken promise that will leave millions worse off.
Earlier in the month, I spoke in a parliamentary debate on the importance of Agricultural Property Relief (APR) and Business Property Relief (BPR). Many small businesses – including those on my constituency – had expressed concerns about changes to these reliefs, which are critical to business planning and the overall sustainability of the rural economy.
Prior to the General Election, the now Secretary of State for Environment, Food and Rural Affairs had said “we [Labour] have no intention of changing APR”, yet during the budget Rachel Reeves announced changes to inheritance tax and APR which, according to the National Farmers Union (NFU), could have a “crippling effect” on family farms and domestic food security.
This is another broken promise from the Labour Government which will harm our rural areas right across the country, including here in Worcestershire.
Today the Government also confirmed it will be moving forward with the imposition of VAT on independent schools starting from January 2025 and the imposition of business rates. This will make the option of sending their children to Private schools unaffordable for many parents in Worcestershire.
Even before the budget, the Independent Schools Council estimated that more than 10,000 pupils had been pulled out of independent schools and enrolled in the state sector – placing unnecessary strain on both the private and state sectors – and I am particularly concerned about the detrimental impact this policy will have on children with special educational needs and disabilities. it is clear that this policy is deeply flawed in design and execution.
Prior to the budget I spoke in several parliamentary debates about this disastrous policy, and I will continue hold the Government to account as they do what no previous government has done before – recklessly tax education services.
There are, however, a few things I welcome in the Budget. For example, I welcome the additional £2 million which will be spent on Holocaust remembrance and education as well as the funding to commemorate the 80th anniversary of VE and VJ day, which will help to ensure that the sacrifices of previous generations and the horrors of the Holocaust are never forgotten.
I also welcome the extension of the freeze on fuel duty which will make a meaningful impact on the finances of both families and businesses, and the extension of tax reliefs on the creative industries – but these are also connotations of policies introduced under the Conservatives.
Away from the budget, it was a pleasure to sponsor Acorns Children’s Hospice event in Parliament earlier this month where we discussed the crucial need to save the Children’s Hospice Grant. There was significant cross-party support from neighbouring MPs as we work together to ensure that the vital care and services Acorns provides for children and families are protected.
I was also delighted to meet incredible paramedics and pilots from the Midlands Air Ambulance at their parliamentary reception. The charity is the primary service covering Droitwich and Evesham, responding to the most severe incidents, and their work is absolutely vital in delivering life-saving care when it’s needed most.
Nigel Huddleston
MP for Droitwich and Evesham constituency
