Growth stalling, tax burden up and business suffer plus welfare cuts - Labour Party disaster.
When political ideology overtakes serving the people who vote, serious alarm bells should ring. The bells are deafening in Westminster right now, the Labour government believe in endless taxing of businesses and have increased N.I. costs for all businesses and council's. This decision based on their ideology has serious consequences - as Conservatives we left the new Labour government with a modest growing economy yet the Labour decision to increase NI payments by £25 billion has meant businesses have scaled back replacing roles when people leave, are not creating new jobs and cannot invest in expansion because this money has had to go into paying extra taxes. The OBR predicts this policy alone will cost 50,000 jobs.
Labour have crushed growth, the OBR has halved it's growth forecast for the UK down to 1%. Chancellor Rachel Reeves refuses to rule out further tax rises in her Budget this Autumn.
The Spring Statement came with four key messages: 1. Growth is stalling at 1%, 2. Tax burden is up and predicted to rise to 37.7% of GDP on 2027-28, 3. Welfare cuts of £4.8 billion with an extra 250,000 people in poverty. 4. £2.2 billion more for defence spending. Sir Keir Starmer said economic growth was his number one priority, yet the opposite is happening as a result of his and the Chancellor's decisions. So far the Labour government has raised taxes for businesses and council's and limited their ability to provide jobs and invest to grow their businesses. Making decisions to increase growth is paramount to the UK's success.
Here in Mid Sussex the alarm bells are also ringing. Our farmers are driving with regularity to central London to protest at the Family Farm Inheritance Tax that will devastate the ability of farming families to hand on the family business from one generation to the next. I stand on the pavement in London and cheer them on - it is total madness to bite the hand that feeds you. I agree with the No Farmers, no Food slogan in a field at the Bolney flyover just off the A23, common sense seems to be sadly lacking in the policy and funding decisions surrounding farmers. As you shop, do remember to buy food with the red tractor label and check the country of origin is the UK, this is the best way to support our Sussex and UK farmers.
Mid Sussex charities representing individuals with disabilities have voiced serious concerns at the welfare cuts, I met a woman in Lindfield whose husband has long Covid and she explained the everyday challenges he faces that have made it impossible for him to return to full time work. They are worried about how the Labour welfare cuts will affect them. On Thursday The Guardian newspaper ran the headline 'Reeves accused of balancing the books at the expense of the poor', protecting people seems to have slipped down the agenda for Labour Party but rest assured it remains at the top of my priority list as a Conservative.
Experienced Mid Sussex business leaders and owners have spoken of resilience, pivoting to help their businesses survive and how to enable their business to thrive through the challenges. Matt from Haywards Heath leads a successful business in London, but as a result of the NI increased costs, his company has made the decision to move their international operation to South Africa. Due to the Labour government we have lost these jobs, spending in the economy of the people in those jobs, business tax and more of their wealthy clients are also leaving the country.
If you had an open door to Downing Street, what would you advise the PM and Chancellor? I am not expecting a call from them! But if they did ask me, I would say - back business so we can invest and grow, don't increase taxes that limit us from thriving. Change the energy policy so it provides cheaper energy for all, support our farmers and create opportunities all consumers to buy more UK grown and bred food. Help business create jobs, not limit them. In one area, I support the government's choice to increase the spending on defence and originally a policy from Grant Shapps MP, former defence secretary, increase spending on defence to 2.5% of GDP by 2027.
Kristy Adams - Mid Sussex Conservative Spokesperson. Thursday 27th March
