Chancellor Rishi Sunak 'taking people for fools' over spring statement, says Easter Ross MP Jamie Stone
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North MP Jamie Stone has branded the spring statement delivered today by Chancellor Rishi Sunak as “simply pathetic” and a "disgrace".
The Liberal Democrat MP argued that it failed to address the cost-of-living crisis facing many of his constituents in Caithness, Sutherland and Easter Ross.
Mr Sunak announced that his statement would "put billions back into the pockets of people across the UK".
But Mr Stone declared: “The Chancellor is taking the people of Caithness, Sutherland and Easter Ross for fools.
"He can stand up in the House of Commons and tell people that they will be better off because of his decisions, but people in my constituency can feel their pockets getting lighter as the weeks go on.
"He has announced vague plans that will take effect in months or years, but has abjectly failed to address the crisis that people are facing right now."
One of the measures unveiled by the Chancellor is an immediate cut in fuel duty for petrol and diesel by 5p per litre.
Mr Stone said: “The interventions he has announced to help with the cost-of-living crisis are quite simply pathetic. A five pence fuel cut will not save a Highland family from poverty when the price of a litre of fuel has risen by 50 pence or more.
"A VAT cut on building insulation matters not a jot when far north families cannot even cover their fuel bills. And once again he has forgotten about off-grid households that rely on heating oil or tank gas, leaving them at the mercy of the market without an energy price cap.
“This Chancellor plainly does not understand the pressures facing people up and down this country. It is a disgrace.”
Mr Sunak announced that National Insurance starting thresholds will rise to £12,570 from July, "meaning hard-working people across the UK will keep more of what they earn before they start paying personal taxes".
He said the cut, worth over £6 billion, would benefit almost 30 million working people with a typical employee saving over £330 in the year.
Mr Sunak also announced that fuel duty for petrol and diesel will be cut by 5p per litre from 6pm on Wednesday (March 23) – representing a tax cut worth £2.4 billion.
The basic rate of income tax will also be cut by 1p in the pound in 2024, when the Office for Budget Responsibility expects inflation to be back under control, debt falling sustainably and the economy growing. He said the cut is worth £5 billion for workers, savers and pensioners.
The Chancellor also set out a series of measures aimed at helping businesses boost investment, innovation and growth.
Mr Sunak said: "This statement puts billions back into the pockets of people across the UK and delivers the biggest net cut to personal taxes in over a quarter of a century.
"Like our actions against Russia, I have been able to do this because of our strong economy and the difficult but responsible decisions I have had to make to rebuild our finances following the pandemic.
"Cutting taxes means people have immediate help with the rising cost of living, businesses have better conditions to invest and grow tomorrow, and people keep more of what they earn for years to come."
David Richardson, Highlands and Islands development manager at the Federation of Small Businesses (FSB), said: “While a number of the measures in the spring statement from Chancellor Rishi Sunak will help smaller firms, our welcome for them is more muted than we would have liked.
"For while they will undoubtedly buy Scotland’s small businesses a little breathing space, much more could have been done to help them absorb their rapidly rising energy costs. With fuel poverty in the Highlands and Islands perhaps the highest in the UK, everyone here is feeling the pinch – but it must be remembered that small businesses have none of the protections of households, nor the negotiating power of big businesses.
“The FSB also argued for an increase in the employment allowance, and it is good to see that the Chancellor has taken this on board. His measure will help smaller firms absorb some of the increasing costs of sustaining jobs.
"Similarly, the reduction in fuel duty will help small businesses reliant upon their vehicles for their livelihoods – a very common feature of business life in this region – and it will help bring down the cost of holidays here slightly for the overwhelming majority of our visitors.
“In short – while beneficial, an opportunity was missed to bring real help to the countless small businesses currently being overwhelmed by massive energy price hikes. Action is still required on this front now, or we face witnessing some great businesses that struggled through the pandemic and survived going to the wall just as things should have been getting better.”
