Today, I condemned the fast unravelling budget that has only lasted 7 days. Last week the Chancellor of the Exchequer delivered his budget which contained a policy to raise National Insurance Contributions (NICs) for the self-employed. Today, the Chancellor announced that they would be scrapping this policy, I welcome this U-turn.
The NICs increase proposed would have seen them increase by 2% over this Parliament. The policy was set to see a self-employed person earning £20,000 a year lose £239 in take home pay. Today, the Chancellor performed a dramatic U-turn and scrapped the policy.
Up to 200,000 self-employed workers in Wales faced the prospect of the 2% rise in their NICs and that figure stood at 7% of the workforce in Delyn.
This is but a string of failed budgets from the Government. Last year the budget came to a grounding halt following the resignation of the Secretary of State for Work and Pensions because of cuts to in work benefits. The budget before that unravelled as the then Chancellor had to announce that he broke his election promise to eliminate the deficit and bring borrowing down. We have also seen previous budgets fail due to the caravan tax, which would have hurt caravan parks in Delyn, and the pasty tax. That’s not forgetting budgets prior that required a U-turn on the sale of UK forests. In all the Government haven’t had a single successful budget in the last 4 years.
This failed budget is demonstrating a Government in chaos. They have performed a U-turn on a £2bn tax rise after being forced to climb down because of a broken promise. It was Labour’s pressure that has forced this U-turn.
We now need clarity on how the Government will fill this £2bn black hole in their budget. Given the Government’s record we need assurances that no working people should be hit by tax rises elsewhere or further cuts to public services.
The Government have now presided over 4 years of failed budgets. They have let down people in Flintshire for the past 7 years. We cannot afford to have a UK Government that does not understand the needs of working people. They produce budget fiasco after budget fiasco. Not learning from their mistakes and failing on their manifesto promises.
I will continue to fight for Delyn, its people and businesses, to get the support they need when prices are rising and uncertainty is the prevailing mood.