Local politicians criticise Labour's spring statement over job taxes and disability benefit changes
Portsmouth and South Hampshire politicians have reacted to the Chancellor’s Spring Statement, raising concerns about tax rises, changes to disability benefits, and the impact on local businesses.
The statement, delivered yesterday, was not a formal budget but an economic update following October’s fiscal plan. Rachel Reeves told MPs that "the world has changed" since her first budget five months ago, which she blamed for the cuts and downgrades.
Labour claims its economic plans will drive growth while ensuring fairness, but opposition parties argue the measures will increase pressure on businesses and vulnerable residents.
Tax Concerns for Local Businesses
The Liberal Democrats criticised the government’s plan to raise Employer National Insurance Contributions, dubbed a “jobs tax,” warning it could harm local businesses in Portsmouth. From April 2025, employers will pay a higher national insurance contribution, rising from 13.8 per cent to 15 per cent.
Charlie Murphy, Portsmouth Liberal Democrats’ parliamentary spokesperson, said: “Across our city, people are struggling with higher energy bills, broken services, and the fallout of Labour’s tax rises. People who backed their promise of change last year now feel let down by Labour.”
The Liberal Democrats argue the government should raise revenue by taxing large social media companies like Elon Musk’s X (formerly Twitter).
Changes to Disability Benefits
The government’s proposed changes to Personal Independence Payments (PIP) could affect thousands in the area. PIP has two parts: a daily living component and a mobility component. Under the government’s plans, assessments for the daily living component will become stricter.
Critics say the changes will make it harder for disabled people to access financial support, potentially pushing them into poverty and making it harder to stay in work.
Lib Dem Treasury Spokesperson Daisy Cooper MP said the Chancellor "ruined her chance to get the economy back on track" and deliver a real growth plan.
Conservative Criticism
Gosport MP Caroline Dinenage also criticised the Labour government, saying: “The Chancellor did her best today to pretend that this wasn’t an Emergency Budget, but on almost every measure the economy is faltering due to choices she has made.”
She added: “Growth predictions have been halved, borrowing has doubled, we are heading for a record tax burden with lower household disposable income, and a quarter of a million people are being pushed into poverty.” She also warned that local businesses like salons and the Gosport Ferry were struggling with rising costs linked to Labour’s tax increases.