, , , , , ,

Spring Statement: Chancellor fails to address cost-of-living crisis, says Portsmouth MP

Stephen Morgan MP attacked the Chancellor Rishi Sunak MP today for failing to address in his Spring Statement the cost-of-living crisis working families and businesses in Portsmouth are facing.

The Chancellor has imposed the biggest tax burden in 70 years and is on course to be one of the biggest tax-raising chancellors in post-war UK history, with the burden of taxation predicted to rise to 36.2 per cent of GDP by 2026-27.

The UK is the only country in the G7 raising taxes on working people in the midst of spiralling inflation, with the latest figures showing it at 6.2%, up from 5.5%.

Meanwhile, France, Germany and Italy are cutting taxes and social contributions on income, with other G7 countries including Canada, Japan and the USA also not raising taxes on working people.

The UK is expected to experience biggest growth downgrade of any G7 economy, with Bank of England forecasts showing growth of just 1.25% in 2023.

Responding to changes announced in the Mr Sunak’s statement, the CEO of the Resolution Foundation, Torsten Bell, underlined it was not focused on ‘prioritising help for low and middle income households.’

Labour’s plan to reduce energy bills would raise money to keep bills low through a one-off windfall tax on oil and gas profits to support all households, with households typically getting £200 off their bills. Labour has said its plan will get £600 to the lowest income households.

On the cost-of-living crisis, the Member of Parliament for Portsmouth South, Stephen Morgan, said:

“The Chancellor had the perfect opportunity today to protect working families and businesses in Portsmouth facing the cost-of-living crisis. Instead, he blew it.

“The Tories continue to push ahead with imposing one of the biggest tax burdens in post-war history, offering next to nothing for those struggling to make ends meet, week after week, month after month.

“Labour said his national insurance hike was the wrong tax. Wrong time. Wrong choice. Today, the Chancellor all but admitted he got that one wrong. He simply doesn’t understand the scale of the challenges families and communities are facing.

“Labour has a plan on the table ready to go to support working people now, but the Conservatives have consistently failed to back it.

“I will continue to lobby government and do all I can to secure the support families and businesses in Portsmouth need and deserve.”

On defence and public services, he said:

Long before the Ukraine crisis, Labour warned of a decade of decline for defence. But despite Russian threats, the Chancellor has once again failed to commit to proper investment in our national security, as well as nothing on schools, support to alleviate pressures on councils, or for our neglected police services.”