A Cumbrian MP has called the Chancellor’s mini budget reversal ‘chaos’.
In an emergency announcement, Jeremy Hunt revealed this morning that he is reversing ‘almost all’ of the tax cuts announced by former Chancellor Kwasi Kwarteng and is scaling back support on energy bills.
As part of the reversal, a 1p cut to income tax will be delayed ‘indefinitely’ until the UK’s finances improve instead of being introduced in April 2023 as announced in Kwarteng’s mini-budget three weeks ago.
Hunt said that the government’s energy price guarantee will only be universal until April and not for two years as originally planned.
After April, the scheme will be more targeted following a review into how to support people with their energy bills.
The mini-budget tax measures being reversed did not go through parliament.
Liberal Democrat Tim Farron, MP for Westmorland and Lonsdale, said: “Let’s be clear: this emergency statement is not in response to an external crisis, a war, a pandemic or global energy prices – it’s in response to the ongoing crisis in the Conservative Government.
“It also speaks volume about the Conservatives’ total disregard for rural communities like ours in Cumbria, that one of the only things that hasn’t been axed from the mini budget is the cut in stamp duty – a measure which will fuel excessive second home ownership and the Airbnb boom that is turning our communities into ghost towns and ejecting local families. This chaos cannot be allowed to go on for any longer – it’s time for a General Election.”
Simon Fell, the Conservative MP for Barrow and Furness, said: “There’s nothing wrong with going for growth, and making reforms to the economy that enable us to get there. But you simply can’t achieve it without confidence and stability.
“I’m very glad to see Jeremy Hunt in No11 as Chancellor – he is a reassuring and sensible figure who can reassure the markets and get the government back to the principles of sound money.
“I’m also very glad that he is continuing the measures in the mini-budget that do matter and will make a bit difference to communities like ours – not least investment zones (where we have bids in at Ulverston and Barrow), cutting National Insurance, putting £350 back into people’s pockets, and accelerating key infrastructure schemes – with the A595 bypass at Grizebeck being one of them.”
Conservative Dr Neil Hudson, MP for Penrith and The Border, said: “It is encouraging that the new Chancellor has acted decisively to reassure markets and is making efforts to stabilise the economy. The Government has shown it is listening to me, and my Conservative colleagues, regarding the economy and so I thank the new Chancellor and hope he will again listen by making sure any review of the landmark energy support will take into account people who are struggling against unprecedented price rises.
“I am very clear I do not wish to see cuts in public sector funding moving forward and I will continue to make representations to Government on that point in no uncertain terms. I’ve repeatedly called for more support for people during the cost-of-living crisis, particularly in rural areas such as ours who use heating oil or LPG to heat their homes and businesses.
“And also, I will continue to make representations to the Government that support benefits should be uprated in line with inflation, rather than earnings. Now more than ever the country needs compassionate One Nation Conservatism that protects the most vulnerable in society. It is also positive that the Government is committed to accelerating infrastructure projects such as the Gigabit rollout and the A66 upgrade, both of which are crucial to people and businesses up here in Cumbria.”
Mr Hunt added that the announcement of the changes to the mini-budget ahead of the medium-term fiscal plan was to reduce unhelpful speculation about what they are.
Cumbria’s other Conservative MPs – Mark Jenkinson (Workington) and Trudy Harrison (Copeland) have been contacted for comment.
