Shropshire MPs' column - the latest from the county's representatives in Westminster
Read the latest column from the MP for The Wrekin, Mark Pritchard.
Three weeks before the autumn Budget, the nation was called to attention by the Chancellor, Rachel Reeves, for a special news conference.
When the cameras started rolling, the Chancellor dropped a not-so-subtle hint that Income Tax would rise to fill a black hole in the nation's finances.
Two weeks later, the Chancellor claimed new economic forecasts meant Income Tax would not have to rise, even though the forecasts had barely changed.
On Budget day, the Chancellor confirmed many people would pay more Income Tax after all, as she froze thresholds so more people are dragged into paying higher rates of the tax - including many Shropshire pensioners.
The truth is now out: the Chancellor claimed her £26 billion tax raid was needed to save the nation’s finances, when the money is actually being used to bankroll a welfare spending bonanza demanded by Labour backbenchers. It is the Benefits Budget - one which rewards economic inactivity and low productivity.
It was this Chancellor’s first Budget – a £40 billion tax and spend splurge – which has already caused employers to cut recruitment, a record number of agricultural businesses to close, economic growth to plummet, and inflation to rise from 2 per cent to 3.6 per cent.
The Chancellor is now attempting to clear up the mess of the inheritance she has left herself – and making things worse in the process. This Budget strangles any hope there was left of strong economic growth.
Research by the Federation of Small Business has revealed that more small firms expect to shrink than to grow over the next year.
According to UK Hospitality, a typical small pub will see its business rates rise by 76 per cent - about an extra £1,000 per month. Some local pubs can employ up to 60 people on rotation.
Meanwhile, the Institute of Directors reports that big business confidence is “rock bottom”, with many business leaders expecting to see revenues, headcount and investments head firmly in the wrong direction.
Rather than listening to local business owners, the risk-takers and the entrepreneurs who drive local economic growth, the Government has doubled down on its economic incompetence and poor decisions.
The Budget also broadcasts loud and clear to international business that the UK is not a friendly political or economic environment in which to risk investment. The Business Secretary recently admitted that Labour’s tax rises have led to wealthy Britons leaving the country. As a result of this year’s Budget, more young and ambitious people will pack their bags to go and build businesses, create jobs and pay taxes in the USA or UAE rather than in the UK.
Government is supposed to tear down the barriers to innovation, creativity and entrepreneurship, but this Budget is a yet another Labour tax attack on economic liberty, economic freedom, and economic growth. Once again, it is everyday Shropshire folks who will suffer the consequences of the Chancellor's ill-informed and ill-judged choices.
