Damian released the following statement today:
This Budget will be remembered most for increasing the tax burden on working people, which is already at a high level, to fund more welfare benefit spending. But there were also a number of areas of particular relevance to East Hampshire.
Agriculture is a hugely important part of our local economy, and it is disappointing that farmers did not receive a reprieve from the Family Farm Tax, despite some earlier signs of hope. Although there is a change on transferable allowances, the NFU calculates that this will help only a small number of farmers. The inheritance tax changes will still mean family farms having to be broken up. This is a counter-productive tax.
Hospitality and Retail businesses are also very important to our local economy, and to the vitality of our town and village centres. The Chancellor did announce “a permanently lower multiplier for hospitality businesses” but the discount is far short of what was proposed last year. It will take a while to fully work out the full implications of these changes to business rates.
I am concerned about the impact that the new visitor levy on overnight stays will have on our visitor economy, something that should be a growth opportunity locally. Although the levy is technically optional for mayors, in reality the government funding formula will likely assume they will introduce it, so it will be hard to avoid. Like the changes affecting landlords, it is also likely to be inflationary.
On the subject of local business and employment growth opportunities, I will continue to argue for support for the development of the English wine sector, which is centred on Hampshire, Sussex and Kent. It was a missed opportunity not to add support for this young growth industry in the Budget.
Support with energy bills may help offset next year’s rise in the energy price cap, but it is not clear how off-grid households will be helped, something of great significance to many households in East Hampshire.
The introduction of a ‘pay-per-mile’ charge (for electric vehicles) will hit rural communities hardest, where longer journeys are unavoidable. Motorists may welcome the extension of the fuel-duty freeze until next September, though from then onwards prices will rise again. There was good news for East Hampshire commuters with a freeze in rail fares. The key question now is whether vital investment in rail infrastructure will be maintained.
All in all, this Budget is disappointing in multiple respects. It does not pay attention to the particular issues of rural areas, and it does not have the plan for employment and growth that we so badly need.