Budget for 'rebuilding Britain' is well received

LABOUR MP'S HAIL MEASURES BUT BUSINESS LEADERS ARE WORRIED OVER HOSPITALITY

- ANDY PHILLIPS

THE first Labour Budget since 2010 – and the first to be delivered by a female Chancellor – has been mostly welcomed by business leaders and MPs, despite some £40 billion of extra taxation being raised to fund spending and investment pledges.

The region’s three Labour MPs hailed Chancellor Rachel Reeves’ statement – as expected – while Devon Chamber of Commerce admitted that ‘tax rises are required’ to move the nation forward.

However, business leaders said rises in the minimum wage and the increase in employers’ National Insurance contributions will undoubtedly have an impact on an already struggling hospitality sector.

The leader of Plymouth City Council, Cllr Tudor Evans, said the impact of the Budget was still being considered, but said there was good news over grant increases and extra funding for housing.

The landmark Budget, delivered after 14 years of Conservative government, saw the announcement of more than £100 billion of public investment over the next five years, including an extra £25.6 billion over two years for the NHS to cut waiting times.

Ms Reeves said that, in line with Labour’s manifesto promises, there would be no increase in employees’ National Insurance, income tax or VAT for ‘working people’.

Luke Pollard, MP for Plymouth Sutton and Devonport said: “This is a historic Budget to rebuild Britain after 14 years of Conservative failure, with an extra £25.6 billion for our NHS over the next two years to cut waiting lists, along with funding thousands more teachers and boosting housebuilding.

“It is a Budget to support working people, with no increase in income tax, VAT or National Insurance in people’s payslips.”