Autumn Statement reaction
November 18, 2022
Yesterday’s Budget was focussed on stability, growth and protecting those most vulnerable.
We need stability to stathe off rising inflation – the enemy of growth – which is being driven by increased international debts accrued during the pandemic as well as global energy supply chain shocks.
Everyone knew the Chancellor had tough choices to make but he also had a choice regarding who would be most impacted by his economic policies. I am pleased that the most vulnerable will be protected this winter with further support payments confirmed going into next year. There is cause to be optimistic too as early projections show average energy bills may fall below the Government’s £3000 cap by the second half of 2023.
On top of additional energy support payments, benefits and pensions will both rise in-line with inflation. I publicly called for this last month when appearing on Politics North a few days after the Chancellor had been appointment and have been lobbying Treasury Ministers intensely ever since.
The Government have once again shown that they share the public’s priorities by pledging an extra £3.3bn to the NHS for the next three years, continuing a decade worth of real terms funding boosts, as well as by committing an extra £2.3 billion to our schools and £8 billion to adult social care. I have already began making the case to Ministers for York to get a fair share of this investment and will work with local stakeholders to ensure funds go where they are most needed.
While encouraged by yesterday’s statement, there is more that can be done and I hope to raise these in the House of Commons next week. I believe more still has to be done for off-grid homes who use domestic heating oil, especially as further payments have been confirmed for those with mains supply energy. Similarly, we are still awaiting detail of how support will be delivered this winter to those who do not have a direct relationship with their energy supplier, such as park home owners. Once this has been confirmed, the Treasury need to swiftly pledge that it will continue as long as other energy support packages.
To support business, I want to see more meat on the bone explaining how the £13.6 billion business rates support package will be delivered and, more importantly, targeted. It could be argued inflation is partially being driven by the cost of the Government’s broad stroke approach to support during the pandemic. This is a lesson that can be learned from and we now need a laser-like precision focus for support to sectors most in need, such as the hospitality.
Ultimately though, the public deserve to know how these difficult choices will encourage the green shoots of growth and have a buy-in for making sacrifices during trying times. The Treasury must continually review the economic outlook and pass-on any improving projections to the public by scaling back some of the long-term policies announced yesterday.
