Ian Sollom MP Reacts to Autumn Budget

Reacting to the Budget today, Ian Sollom, Liberal Democrat MP for St Neots and Mid Cambridgeshire said: 

“The Chancellor’s Autumn Budget was a golden opportunity to slash the cost of living by cutting energy bills, and to boost our high streets and the local cafes, restaurants and takeaways at the heart of our communities.

We Liberal Democrats have long called for action on both of these issues – and the Government was elected to deal with them. Today, the Government has failed to take meaningful action that will support families and businesses.

It is completely unfair to keep raising taxes on already struggling people – including by freezing tax thresholds again, after the Conservatives inflicted years of stealth taxes on them, and this Labour government hit them with the disastrous jobs tax last autumn. 

Last week, I met with James, owner of Bohemia in St Neots, who spoke to me about the huge impact that last year’s National Insurance Contributions rise, combined with rising energy costs and increases in minimum wage has had on his business. He is not alone in his concerns, and it is clear that our high streets will simply not cope unless bold action is taken. 

Before the Budget, we Liberal Democrats put forward fair, funded ideas to support businesses and families, including saving the average household £90 a year on bills by removing the Renewables Obligation from electricity bills, and with an emergency 5% VAT cut for high street shops, restaurants, and other attractions, funded by a new windfall tax on big banks. It’s hugely disappointing that the Government have, once again, ignored our calls.

It was particularly disappointing not to hear a single mention of hospice funding in the Chancellor’s speech, and precious little about how the Government plans to support carers and reform social care. 

As well as failing people and small businesses, the Government has also saddled universities with millions of pounds in additional costs thanks to the International Student Levy of £925 per student. To add insult to injury, of the expected £445-480 million raised from this levy, only £5 million will be reinvested into maintenance grants to support students from the lowest income households.  

In addition, a flat fee per student will negatively impact post-1992 universities more as they tend to charge lower international student fees, are smaller and offer more specialist courses. They also tend to recruit more students from disadvantaged backgrounds and a levy designed to help increase access would disproportionately burden the very institutions doing most to widen it.

The Government must scrap the levy and the National Insurance Contributions rise introduced in the last disastrous budget, to stop the very real risk of universities going bust and local economies suffering. 

Finally, if the Government is serious about growth and improving the lives of people across the UK, it must take its head out of the sand and fix our broken relationship with Europe. Brexit cost us £1.7 billion a week this year – resulting in the highest taxes ever, sky-high bills and a cost-of-living crisis that blights millions of lives. This is simply not good enough, and people deserve better.

I will continue to work to secure a fair deal for St Neots and Mid Cambridgeshire, and to push for the real change and growth we were promised.