CHANCELLOR Kwasi Kwarteng’s ‘disastrous’ mini budget has been condemned by Worcester’s Labour group leader in a letter to the city’s MP Robin Walker.
Coun Lynn Denham, who stood against Mr Walker at the 2019 General Election, also criticised Mr Kwarteng for allegedly attending a champagne reception with hedge fund managers hours after the speech.
Speaking days after the controversial cut of the 45p tax rate was reversed, the senior Labour voice rounded on the plan and claimed the only beneficiaries were ‘those hedge fund managers who made vast profits from betting against the value of the pound’.
“The Chancellor’s disastrous mini budget led directly to a huge increase in the cost of government borrowing, a fall in the value of the pound, and to mortgages becoming unaffordable for huge numbers of the British people,” she said.
“As Labour canvassers can confirm from our conversations on the doorstep, since the ‘mini’ budget, the people of Worcester have been hit by extreme anxiety about the cost of the rent and mortgages.”
In response, Mr Walker claimed Coun Denham had ‘ignored’ most of the budget and pointed out measures to help households, businesses and public services with the cost of energy would last two years, not the six months proposed by Labour.
“With regard to the proposed changes to the 45p rate I happen to agree this was a mistake and rather than sending open letters about it, I spent time speaking to Treasury Ministers, whips in the Government and other colleagues to get it reversed,” he said.
“I was glad to hear I have been listened to and as Worcester’s MP I can ensure the fiscal firepower that is available is more focused on what will directly help my constituents.”
Mr Walker said he was proud of the ‘consistent’ increase in the minimum wage, the income tax threshold and in employment so more people in Worcester are in work, keeping more of what they earn and that work is better paid.
“I support measures in the Growth Plan to ensure that households are protected from the impact of rising energy costs and to do so over multiple years. Most of all, I support ensuring that the basic rate of income tax is the main focus for any personal tax cuts,” he said.
“As you will appreciate, I am not currently a member of the Government and do not have access to the Chancellor’s diary but I am quite sure he can answer for himself on questions about who he met and why.
“I am glad he has since listened to the concerns of backbench Conservative MPs on the question of the 45p tax rate and I am looking forward to supporting the many other measures in his growth plan that will help my constituents,” Mr Walker added.
