Hull East’s MP has claimed the chancellor is living in a parallel universe following the unveiling of the Autumn Budget.
Labour’s Karl Turner tweeted tax rises, high energy bills and longer waits for GPs and hospitals for his constituents meant they would not recognise the picture painted by Rishi Sunak.
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Emma Hardy, Labour MP for Hull West and Hessle, tweeted she was irked by the chancellor’s announcement of more funding for early years services given the closure of Marvel House.
But Conservative Haltemprice and Howden MP David Davis welcomed an announcement on tax hikes on property developers to remove unsafe cladding as a good start to tackling the issue.
The MP’s reactions come as Mr Sunak said his Budget would usher in an economy with higher wages, skills and productivity when presenting it to parliament this afternoon.
The Office for Budget Responsibility (OBR) has also slashed its post-pandemic unemployment forecast from 12 per cent to 5.2 per cent. The OBR’s prediction for coronavirus’ hit on the economy has been cut from three to two per cent of GDP.
Budget announcements included a 6.6 per cent rise in the Minimum Wage to £9.50 an hour from next year.
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A tax cut of five per cent on drinks served from barrels of 40 litres or more is set to cut the price of a pint of beer or cider by 3p.
The number of different alcohol rates are set to fall from 15 to six which Mr Sunak said would simplify levies meaning stronger drinks would be subject to higher taxes.
The cut will also make low strength sparking wines such as prosecco cheaper.
The amount taken from Universal Credit payments will fall from 63p in the pound to 55p for every hour worked.
A planned fuel duty hike has been scrapped because of recent price increases, with domestic airline duties also cut.
Other announcements include £3.8bn in extra skills funding and a four per cent levy on property developer profits over £25m to fund the removal of unsafe cladding.
The Budget will also see the bank surcharge slashed from 8 to 3 per cent which is estimated to cost The Treasury £4bn in the next five years.
Mr Turner tweeted the Budget showed the Conservatives had been in power for too long.
The Hull East MP said: “People in east Hull won’t recognise the world described by the Chancellor. He’s in a parallel universe. Tax rises, high energy bills, no way to see a GP, no coppers on the beat and record waiting times.”
Ms Hardy said a £150m boost in early years funding was a watered down version of services the government had already cut.
The MP tweeted: “I’m a little irked by the chancellor saying how important early years are after his government shut Marvel House in Hull which is where I used to take my daughters when they were young.”
Labour Hull North MP Diana Johnson said alcohol duty changes would make beer and cider pints 3p cheaper but cut 16p from the price of a glass of champagne.
The chancellor said: “This budget helps with the cost of living and builds a strong economy for the British people.
“Last year the state grew to be over half the size of the total economy.
“Taxes are rising to their highest percentage of GDP since the 1950s.
“I don’t like it but I cannot apologise for it, it is the result of the unprecedented crisis we faced and the extraordinary action we took in response.”
Shadow Chancellor Rachel Reeves said in response the budget showed Mr Sunak was out of ideas and out of touch and that it would leave working people out of pocket.
She added the government was now a byword for waste, cronyism and vanity projects.
Ms Reeves said: “The chancellor in this Budget has decided to cut taxes for banks, so at least the bankers sipping champagne on short haul flights will be cheering this today.
“The highest sustained tax burden in peace time, and who is going to pay for it?
“It is not international giants like Amazon, no, the chancellor has found a tax deduction for them.
“It is not property speculators, they already pocketed a stamp duty cut and it is clearly not the banks, even though bankers bonuses are set to reach a record high this year.
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