Letter from Mark Langabeer, Hastings and Rye Labour member
The budget was described as a traditional Labour Party budget. ‘Tax and spend’ was the cry of the Tories, Reform and their friends in most daily papers. Higher NI contributions on employers, higher Capital Gains tax and Inheritance tax, as well as the end of VAT exemptions for private schools.
There were many other smaller tax rises on the wealthy. My favourite was extra duty on private jets. £40bn on extra taxes and £30bn in more borrowing. The hope is that extra spending on health, education and housing will promote investment and growth.
I think that the jury is out on this one. Most investment is conducted in the private sector and are determined by the prospect of profit. In my opinion, this budget isn’t transformational because there are no plans to take over the banks and other major financial institutions.
There was no reference to the rise of poverty in Britain, let alone any policies to solve it. However, the budget is in marked contrast to Tory rule. It knocked on the head the idea that there are no differences between Tory and Labour. If Starmer and Co implemented straight forward austerity measures, there would have been a howl of protest from the unions and Labour’s rank and file.
