Rishi Sunak has been urged to scrap a planned National Insurance hike and cut fuel taxes to help families facing a “cost of living crisis”.
Speaking ahead of tomorrow’s Spring Declaration, North East MPs and leaders demanded bold action from the Chancellor. The Treasury said Mr Sunak would use his mini-budget to explain how he intended to “stand with” families during the difficult times ahead.
But government sources said Mr Sunak was reluctant to make big tax changes, of the kind demanded by our region. Newcastle MP Catherine McKinnell said many families in her constituency were facing “sleepless nights” due to soaring costs.
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She said: “This crisis will only get worse as the invasion of Ukraine drives inflation even higher, and I know that many families in my constituency are seriously worried about what their future holds. Without urgent government action, next month will see the double whammy of an increased energy price cap on top of the Conservatives’ tax hike on workers.
“The National Insurance hike is misguided and deeply unfair, and takes money out of people’s pockets and out of our local economy just as businesses begin to recover from the pandemic. The spring statement is an opportunity important for a U-turn and the Government should take it, while backing Labour’s plans for a windfall tax on the profits of oil and gas companies to help our families struggling with ever-increasing fuel bills.”
North Tyne Mayor Jamie Driscoll said he would like to see more money for green industries to boost the economy. He said: “The cost of living crisis poses a serious economic threat.
“Rising costs and less money in people’s pockets risk causing a recession where poverty will overwhelm our public services.
“The Chancellor could turn the tide. A Green New Deal that renovates homes, improves public transport and provides cheap renewable energy will pay off.”
Wansbeck MP Ian Lavery has warned child poverty in the North East will get “much worse” unless more support is given. He said: “There are fruits at the Chancellor’s fingertips that would make a real difference to the lives of ordinary hard-working people.
“This includes reversing the National Insurance hike, significantly reducing fuel taxes and VAT and increasing the amount workers who use their vehicles can claim per mile, enrolling the right to food in law and free school meals for all children and the implementation of a wealth tax on billionaires and huge profits amassed throughout the pandemic.
Middlesbrough MP Andy McDonald echoed the calls saying: “The Chancellor needs to wake up and understand the full impact of the cost of living crisis which is affecting millions at the moment. The Government must step up and Giving the British people the urgent support they need and tinkering around the edges will not be enough.”
Speaking ahead of the statement, Mr Sunak said his economic plan would deliver a “faster growing economy”, “more resilient public finances” and “security for working families”. The Chancellor’s statement is also expected to explain how the government plans to create a new “business culture”, with the private sector training more, investing more and innovating more.
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