Wakefield political leaders and business community react to 2023 Budget

Chancellor Jeremy Hunt today delivered his Budget in the Commons, which he said was aimed at drawing people back into the workforce.

Key points of the speech included scrapping the lifetime allowance on tax-free pension contributions.

Free childcare of 30 hours a week for working parents is being expanded to cover children from the age of nine months to two years old.

Fuel duty has been frozen for another year and government help with energy bills is being extended for another three months.

Funding will be provided for up to 50,000 places on new voluntary employment scheme for disabled people, called Universal Support.

Defence spending is being boosted by £11bn over the next five years and corporation tax will be increased from 19 per cent to 25 cent.

The economy is forecast to grow by 1.8 per cent in 2024 and 2.5 per cent in 2025, while inflation is expected to fall to 2.9% by the end of this year.

Labour leader Keir Starmer accused the Chancellor of being “out of touch” and putting the country “on a path of managed decline”.

Wakefield Council leader Denise Jeffery described the Budget as a “wasted opportunity” to help ordinary people.

She said: “Whilst I recognise that many people will be relieved about the energy price cap staying in place for now, and that we might technically avoid recession this year, this Budget did little to support hard-working people and get the growth in our economy that we so badly need.

“Britain is the only major industrialised economy which hasn’t recovered to pre-pandemic levels, something which builds on this Government’s woeful record on growth during the last 13 years.

“Until we have a fairer approach, providing our businesses with the stability and certainty they need to invest alongside properly funded public services then this will continue.”

Wakefield MP Simon Lightwood said: “Many families in Wakefield are facing lower wages, higher mortgage costs and the highest tax burden since the second world war.

“They needed a Budget which would deliver for them and unlock Wakefield’s potential.

“Instead, the Conservatives have chosen sticking plaster politics, which will continue to hit living standards and deliver the weakest economy in the G7.

“The only permanent tax cut they have announced was for the richest 1 per cent. of earners, costing £1 billion and being paid for by working people already struggling with the cost of living.

“It is clear that the Government lacks ambition and is out of ideas.”

Hemsworth MP Jon Trickett said: “The government claimed this would be a back to work Budget.

“But back to work incentives around welfare benefits and pension allowances don’t tackle the underlying problems of the British labour market.

“They don’t shift the balance of wealth and power in this country in favour of working people.

“A back to work Budget would end the disgraceful state of the world of work for millions of workers.”

Martin Hathaway, the managing director of the Mid Yorkshire Chamber of Commerce, said: “I would like to commend the Government’s announcement of further childcare funding.

“This initiative has the potential to drive economic growth across our regions of Halifax, Huddersfield and Wakefield and the wider UK by enabling more parents to participate in the workforce.

“By easing the financial burden of childcare, along with prolonged energy bill support, we are unlocking a valuable talent pool that businesses across the region can tap into.

“I was disappointed that transport did not appear a top priority for the Chancellor today. Here in Yorkshire, and across the north, we have suffered with inadequate transport links for many years, made worse by the ongoing strike action.

“I urge the Chancellor to place a higher focus on transport in our areas to bring it up to speed with the capital and other global infrastructure leaders. Enough is enough.”