Spring Statement: Cumbrian leaders react to Rishi Sunak's statement

With high inflation, spiralling fuel and energy costs and economic uncertainty, there was much riding on the Chancellor’s announcements to provide support for people in the face of a global cost of living crisis and war in Ukraine.

Among a raft of measures, Mr Sunak revealed:

• Fuel duty would be cut by 5p per litre until March 2023
• The basic rate of income tax would be cut from 20p in the pound to 19p by the end of the current Parliament in 2024
• VAT will be removed on energy-efficient measures such as solar panels, heat pumps and insulation, as well as on wind and water turbines
• The Household Support Fund will be doubled to £1 billion
• National insurance contributions threshold will rise by £3,000- from £9,500 to £12,570 in July.

• Tim Farron, MP for Westmorland and Lonsdale, said the measures did not go far enough.

  CONCERNED: Tim Farron, MP for Westmorland and Lonsdale

  “I’m massively concerned that the Chancellor’s statement didn’t go anywhere near enough to protect people from the hardship that is coming down the tracks,” he said.

  “He could’ve announced a windfall tax on the energy companies, to offset rising prices for vulnerable families – but he chose not to.

  “He could’ve announced that he was scrapping the rise in National Insurance this month, that is set to cripple working people – but he chose not to.

  “He could’ve announced he was extending the cut in VAT for hospitality businesses to keep them afloat and their workers in a job – but he chose not to.

  “He could’ve announced he was going to undo the premature slashing of farm payments which is set to put so many small family farmers out of business and worsen our food security crisis – but he chose not to.”

Mr Sunak also said there would be tax cuts "on business investment and innovation with final decisions to be announced in the Autumn Budget" and a reform of research and development tax credits.

And the employment allowance for small businesses will rise to £5,000, the Chancellor said.

During his statement, he told the Commons that The Office for Budget Responsibility (OBR) has downgraded the growth forecast for this year to 3.8 per cent.

But he said downgraded growth forecasts had "not affected our strong jobs performance" as he said unemployment was back to levels seen before the pandemic.

He added that the Government is "meeting all our fiscal rules", but the nation must prepare for "the economy and public finances to worsen, potentially significantly" because of the impacts of Russia's invasion of Ukraine.

And he warned that the cost of borrowing is set to continue to rise- £83 billion will be spent on debt interest, "the highest on record and almost four times the amount we spent last year".

Suzanne Caldwell, managing director of Cumbria Chamber of Commerce, said there was ‘virtually nothing’ for businesses in the announcement.

DISAPPOINTED: Suzanne Caldwell, managing director of Cumbria Chamber of Commerce.

 “It’s good that there have been some measures to help consumers, but these by no means go far enough,” she said.

“And it’s hugely disappointing that there is virtually nothing for business in today’s announcements.

“The 5p cut in fuel duty will be positive for both businesses and consumers, but it still leaves us with extremely high petrol and diesel prices and is less than the benefit the government is experiencing through the increase in fuel duty income related to higher prices.

“While the £3,000 increase in the NI threshold is positive, again this does not go far enough.

“Employers are still facing the impending impact of the increase in Employers NI.

“Leaving any real consideration of support to businesses until a Tax Plan to be announced in the Autumn Budget is too late.

“Businesses need serious help now.

“Other “announcements” such as Help to Grow are not new and do not address the route problems.

“And the £1,000 increase in the Employment Allowance will have minimal impact.

“The Chancellor has missed a real opportunity to give businesses the help they desperately need.”

MP for Barrow and Furness Simon Fell said the measures meant Barrovians would keep more of what they earned.

POSITIVE: Simon Fell MP for Barrow and Furness

“The situation in Ukraine reminds us that the United Kingdom’s security and ability to be a force of good in the world is in large part based on the strength of our economy,” he said.

 “That is why I welcome the government’s plans to publish a new Tax Plan to reduce and reform taxes. 

“This is a welcome change for the people in my constituency as these cuts will mean that the hardworking people of Barrow and Furness can keep more of what they earn.

“This Tax Plan delivers the biggest cut to personal taxes in over a quarter of a century – simplifying our system in the long-term whilst we deliver immediate relief for cost-of-living pressures.

“I am pleased that the Household Support Fund will be doubled to allow our local councils to support the most vulnerable. As with all the grant funding throughout the pandemic, my team stand ready to liaise closely with the local authority to ensure the funding reaches those most in need.”