Stephen Morgan MP has expressed his concern that families in Portsmouth are set to be £870 worse off under the Prime Minister’s tax plan, new reveals.
Announcing the Budget, the Chancellor Jeremy Hunt said “someone on the average salary will save around £900” after announcing a two percentage point cut to the main rate of National Insurance.
However, income tax and national insurance thresholds have been frozen under Rishi Sunak and Jeremy Hunt since 2021, leaving millions more people paying a higher rate of tax. The Tories are imposing a £5 billion hike on council tax on households across the country.
New analysis from the Labour Party reveals for every £10 people are paying in tax they will only be getting £5 back. Even after the tax changes announced by the Chancellor yesterday afternoon, the average household will still be £870 worse off because of the Tories’ tax betrayal.
The OBR also revealed Tory stealth tax rises will drag 3.7 million people into income tax.
The City MP has slammed the new analysis as ‘The Big Tory Betrayal’ with working people in Portsmouth paying higher mortgages, higher taxes and having less money in their pockets after fourteen years of economic failure.
Commenting, Portsmouth South MP Stephen Morgan said:
“People in Portsmouth and across the UK are already suffering with the highest tax burden in 72 years and now we learn that local people are set to be £870 worse off under the Prime Minister’s tax plan.
“This Budget was another missed opportunity for a proper plan to grow the economy, with planning reform, industrial strategy, investment in clean energy and making work pay and as a result Portsmouth people are paying the price.
“The central mission of the next Labour Government will be to get our economy growing so everyone in Portsmouth will be better off. We will bring economic stability back and invest in British business, unlocking tens of millions of pounds of private sector investment to benefit towns and cities such as Portsmouth.”
Rachel Reeves, Labour Shadow Chancellor of the Exchequer, said:
“Once again the Tories are giving with one hand and taking more with the other. For every extra £10 people are paying in tax they are only getting £5 back and the average household will still be £870 worse off under Rishi Sunak’s tax plan.
“It just a cynical gimmick from a weak prime minister who is desperately trying to cling onto power.
“It’s time for change. Rishi Sunak should call an election and give the public the change to vote for a changed Labour Party that will change Britain for the better.”
You can view Mr Morgan’s response to the Spring budget here.
