'Shock and horror' in Leeds over Chancellor Rishi Sunak's spring statement and what it could mean for people on low incomes

The leader of a Leeds-based debt charity said she felt "shock and horror" at Chancellor Rishi Sunak's spring budget statement, and warned it could plunge some of the poorest people in the city further into poverty.
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In the statement, often dubbed a "mini-budget", Mr Sunak announced cuts to fuel duty, a rise to the national insurance threshold and an increase in employment allowance.

But there was no mention of any help for those on universal credit, despite the controversy around the Government's recent scrapping of the £20 uplift to those on the lowest incomes.

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Businesses were also less than impressed at the statement, with one bar owner saying the extra support for businesses would prove "not significant", while a senior business representative called the plans "light on detail".

Chancellor Rishi Sunak and, inset, Sylvia Simpson, chief executive of Money Buddies. Pictures: UGC/PA.Chancellor Rishi Sunak and, inset, Sylvia Simpson, chief executive of Money Buddies. Pictures: UGC/PA.
Chancellor Rishi Sunak and, inset, Sylvia Simpson, chief executive of Money Buddies. Pictures: UGC/PA.

Among the announcements from Mr Sunak was a 5p cut in fuel duty to last until March 2023. He also decided the national insurance threshold would rise from £9.500 to £12.500 from this July. This means individuals will be able to earn up to £12,500 before they pay income tax or national insurance.

Mr Sunak called it a "tax cut that rewards work" but Sylvia Simpson, chief executive of Leeds-based debt charity Money Buddies, said this missed the point, as those not working through no fault of their own would face the biggest hardships.

She said: "I am in shock and horror at the fact that he has concentrated on people who are working, while those who are not working due to circumstances beyond their control get nothing.

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"The energy crisis that is about to hit us this month is going to hit the poorest the hardest. I worry and am fearful for what lies ahead now.

"There was nothing at all. No addressing the 6.2 per cent inflation increase, no increase to universal credit, no £20 uplift back, nothing for nobody who is in the welfare benefits system.

"We would have liked to have seen an uplift in Universal Credit, I would have liked to see an uplift in the warm home discount. I would like to have seen VAT knocked off fuel bills and more than 5p off the fuel duty. I would like to have seen a lot more from him in relation to how he will support people on the lowest incomes, and there was nothing.

"We are already inundated with people needing advice from us. We expect we will be inundated even more. It's not only people not working affected. You can be working and on the cusp of Universal Credit - you can still not have enough money to live off."

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Rachel Gregory works for Christians Against Poverty, a West Yorkshire-based debt counselling charity.

She said: "There was some good news today, but it failed to help create any financial security for people on lower incomes.

"The focus today was on the tax system, with the rise in national insurance threshold - it was a statement that was geared towards workers and homeowners. We wanted to see a greater uplift in benefits."

Mr Sunak's statement added that the previously-announced business rates discount would still be in place, meaning smaller companies would get a 50 percent discount on their council rates up to £110,000. Employment allowance, designed to cut small business tax bills to make it easier to employ workers, is also set to increase to from £4,000 to £5,000.

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Terry George co-owns the Viaduct and Fibre bars in Lower Briggate. He said the statement focussed too heavily on "handouts" rather than any help to get businesses back on their feet.

He added: "It would have been great to have had a VAT reduction for the hospitality industry. It would have helped a lot of places to recover as a lot of us are still playing catch-up after Covid.

"The employment allowance increase will be a small help but it won't be significant - it's a big amount to the treasury but not much for workers. Whatever they give, it is still better than nothing.

"But the VAT changes would have been the biggest thing for the hospitality industry, and we were hoping we might have that."

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Mark Goldstone is head of the West Yorkshire Chamber of Commerce - a group which represents businesses in the region.

Speaking shortly after the statement, he said: "I think it was the shortest budget statement I have ever heard.

"It was a bit light on detail for businesses - there were lots of things in the autumn budget, but I am reading through the document now and I am scratching my head - what can I take to our members and say 'this is something we should get behind'?"

He warned some manufacturing companies in the region were seeing rises of up to 300 per cent in their energy bills over the past year, and that more should have been done to combat this.

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Speaking in Parliament when announcing the changes, Mr Sunak said: "The tax plan I have announced today will help businesses and people deal with rising costs. We want the proceeds of growth to be shared fairly. Individuals spend their money better than governments do.

"This government has been prepared to make difficult but responsible choices to fix our economy. My tax plan delivers the biggest personal tax cut in a quarter of a century."

Shadow chancellor and Leeds West MP Rachel Reeves (Lab) said: "Today was the day the Chancellor could have put a windfall tax on the oil and gas producers to provide real help to families, but he didn't. Today was the day he could have set out a proper plan to help businesses and create jobs, but he didn't. Today was the day that he could have properly scrapped his national insurance hike, but he didn't.

"Inflation is at its highest level for 30 years, energy prices are at record highs. People are worried sick. It is clear the chancellor does not understand the nature of the challenge. His choices are making the cost of living crisis worse not better.

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"The cost of living crisis is hitting people hard because incomes have been squeezed during the last 13 years of Conservative governments. Ordinary families, disabled people and pensioners are facing really difficult choices."

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