A first budget from a new government tells us a lot. Have to say, I feel disappointed and for our small businesses and farmers somewhat dismayed. Nothing in it for South Hams District Council really. I think we all knew taxes were going to have to go up despite the various election pledges. The new Labour government in 1997 seemed so sure footed, always a few steps ahead of the game. This Labour administration seems rather chaotic in comparison but at least it’s not the last lot!

Taxing jobs, not the right thing to do.

I seem to remember when Rushi Sunak tried to raise National Insurance, politicians from all sides decided it would be a disaster. How ironic that now in government, it’s the only choice. The country seemed to be on its knees, so something had to happen. I’m just not sure increasing tax on jobs is the right thing to do. We’re one of the wealthiest countries, we need to tax wealth before work especially if we want to achieve economic growth and boost productivity.

So much of our national wealth is tied up in houses. House price inflation has been rampant, much of it fuelled by taxpayers’ subsidy. The knock-on effect is ever increasing costs (and that’s not including soaring energy prices.) For many, once rents or mortgages are paid, there’s very little disposable income left. This lack of spending power has a detrimental impact on our economy.

If everyone’s rent or mortgage repayments were halved, just imagine how much more money there would be circulating in our economy. Appreciate it can’t happen overnight but policies to freeze house prices would get my vote. Might not be popular with homeowners but it won’t cost them anything, they’ll still have a roof over their heads.

Good Points

There are some good points, particularly the investment in public services including the NHS and education. The extra funding for social care was desperately needed but there are worries the NI hike will swallow that up. Very pleased the Household Support Fund is to be extended for a further year and the triple lock on pensions has been confirmed.

Got to welcome the ending of the non-dom tax loophole. Although we don’t know what it’s being replaced with. A new internationally competitive residence-based regime, we’re told. I’d like to see the details.

Farmers and Hospitality

I’m struggling to see the benefit of introducing inheritance tax on family farms. It’s just what the industry doesn’t need in these tough times. It isn’t right the super-rich are using the tax relief to avoid paying their fair share, but there must be a better way of stopping this. Breaking up family farms will have a detrimental effect on our food security not to mention our way of life in the South West.

Everyone knows our hospitality industry is struggling. There’s nothing in the budget to help them other than the gimmick of 1p off the price of a pint of beer. Soaring costs, lack of staff and fewer people who are then spending less is not good news. The last thing they needed was an increase in wage costs and a reduction in business rate relief. Much of our local economy depends on farming and the hospitality industry. This budget has not served them well.

Tough Decisions

We’re told it’s about taking tough decisions. I see they’ve ducked the issue on fuel duty. How about increasing it and using half of the revenue to invest in rural public transport. You can’t be a ‘green’ government and then shy away from doing unpopular things. Now that would be a tough decision.