Rt Hon Sir Julian Smith KCB CBE MP, MP for Skipton and Ripon, has responded to the Chancellor's budget laid out on Wednesday, 30 October.
Julian said: "As I reflect on the Chancellor's budget announcement, I am increasingly concerned about the direction in which the Labour government is heading. As Rishi Sunak said in his final speech to the Commons as Conservative leader, “We need businesses, workers, investors and entrepreneurs to all back this country and build our economy.” The only way for our economy to grow and for wealth to be created is if people put in more and risk their capital. I know this first hand as an entrepreneur and I know it from meeting hundreds of incredible business owners from across the constituency.
I am particularly concerned about the overall impact on sectors key to our local area - such as small businesses, farmers, and the hospitality industry.
The increase in employers National Insurance contributions places a massive burden on our small and medium enterprises, which are the backbone of our economy particularly here in North Yorkshire. We recently saw the brilliance of local business at the Skipton Business Awards which showcased their innovation and contributions to the local community. Businesses like these need tax relief and incentives to grow even further, not more pressure to meet their obligations.
I am also very concerned about farmers in our area being impacted by the changes to the changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) made by the Chancellor. APR prevents inheritance tax from being applied to farmland upon a farmer's death - allowing the next generation to continue farming and providing environmental benefits. Without APR, family farms could be broken up and sold, which would be a disaster for national food security. BPR serves a similar purpose for other rural businesses, including diversified farms engaged in activities like renewable energy, weddings, and holiday lets. I support the strong campaign by the NFU and others to reverse these policies.
Further, the new burden of VAT on private school fees whacks those parents and families who have worked hard and chosen to send their children to private school. The knock-on effect could be an influx of students moving from private to already overstretched state schools. Following the original announcement of this policy local private schools, such as Belmont Grosvenor in Birstwith and Giggleswick School, Settle, have outlined to me just how key they are to the local economy and the money they will now have to find to cover for lost fees could be at cost of jobs. This means less money being spent by local people in local shops and hospitality.
On a more positive note, the commitment to additional grant funding for councils and the £1 billion uplift in funding for special educational needs reflects some awareness of the pressing social needs of our communities that I called for a few weeks ago at Prime Minister's Questions.
The rise in the weekly earnings limit for Carer’s Allowance is positive for our area, the allowance will be increased to 16 hours at the National Living Wage, worth an additional £45 a week from April next year. This will help carers to balance work and caring responsibilities.
But whilst there will be debate over specific policies, the big picture of this budget is clear. There will be huge increases in tax and borrowing with lower economic growth than forecast for the previous Government. This is therefore not a budget for growth. It
is difficult to overlook the overarching sentiment of missed opportunities for our businesses and farmers and above all for the jobs and income our country needs.
I will continue to raise the concerns of people across the Skipton and Ripon constituency to ensure the Labour Government are aware of the impact of their policies on local people."
