BUDGET 2024: Cllr Chris Steward slams Rachel Reeves budget

The party’s group on City of York Council say increasing the National Insurance paid by employers will hit growth, as it makes employing workers more expensive, while also limiting their ability to pay higher wages.

Cllr Chris Steward says the budget also hammers those “who seek to work hard and save”, with it following the removing of the Winter Fuel Allowance, whilst at the same time increasing pay rates for train drivers.

The Tory group leader says higher rates of Capital Gains Tax will reduce the incentive to save.

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Changes to Agricultural and Business Property Relief will bring previously excluded businesses into the tax system.

And imposing VAT on private school fees from January will see more pupils enter the state system and could cost more money than it raises.

Cllr Steward said: “The budget is a terrible one for virtually all. Labour’s ‘growth’ rhetoric has been shown to be entirely vacuous and by hiking taxes on business growth will suffer.

“Labour has tied itself in knots on the definition of ‘working people’ but aside from the highest paid civil servants, who are protected, this budget seems to hit anyone seeking to work hard and do the right thing.

“The budget seems more about hope that reality it referenced improvements to come from technology as a way of saving money but with no tangible detail at all.

“Additionally the changes to the non Dom rules, although not something we oppose on principle, look uncosted and likely to see even more high earners and therefore higher tax payers look to leave the country.”

Cllr Steward continued: “The supposed ‘black hole’ is a work of fiction, no country in the world has public finances as open as the UK, even without the Office of Budget Responsibility.”

However, he said the Conservatives welcomed extra defence spending, more money for local government, initiatives to tackle shoplifting, but “the devil will be in the detail.”

Rachel Reeves delivers her budge – PA wire (Image: House of Commons/UK Parliament/PA Wire)

Whilst the budget confirmed funding to upgrade the TransPennine railway line from York to Manchester, and electrification work south of York, Cllr Steward noted York has since the July General Election suffered from cuts in funding to Haxby Station and “a lack of meaningful news” on dualling the A64, with Labour-run City of York Council also seemingly “stalling on the A1237 dualling.”

Cllr Steward also told the Press the budget also showed a lack of business experience in the cabinet.

He said: “Whilst people knew that, as always, Labour would tax more, spend more and run up more debt I don’t think people thought the hits would be this bad and soon. The Conservatives were honest in the election campaign that things were not easy but inflation coming down and employment remaining strong were good foundations for the future.”

Looking at it’s political impact, the Copmanthorpe ward councillor added: “It is incredible how quick and sharp Keir Starmer’s slump in popularity has been as the tough choices of government have shocked a man who seeks purely to be in power, rather than having and views on what to do, never mind principles.

“Now he is in government it seems to be one wrong choice after another. I would expect he will remain in power for some time yet but the role of Angela Rayner pulling the strings will get tighter.”