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MP for the Borders

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John Lamont
MP for the Borders

Labour's first budget betrays the Borders

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Friday, 8 November, 2024
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Labour's first budget betrays the Borders

Over the last week I have heard from numerous local residents who are dismayed and bitterly disappointed by the first Budget from the new UK Labour government.

Labour promised 'change' in the recent General Election but this is not what voters across Scotland and the UK expected.

Nobody was told that Labour would increase tax by the highest amount ever in a single budget - £40 billion.

Sir Keir Starmer, Rachel Reeves, Anas Sarwar and dozens of other Labour politicians repeatedly promised that they would not raise taxes on working people, but that's exactly what they have done.

Labour's budget increased National Insurance contributions on businesses, but the Office for Budget Responsibility say the vast majority of that rise will be pushed onto workers themselves.

This will be a bitter blow to hard-workers across the Borders who do the right thing, put a shift in and didn't expect to be hit by higher bills in this Budget.

The impact on small enterprises will be severe too. The new Secretary of State for Scotland, Ian Murray, knows that only too well because he previously said that National Insurance increases would have an "enormous impact" on businesses.

When many are already struggling, it's simply wrong to increase their tax burden. Labour don't seem to understand that it's businesses who provide the jobs for workers and the tax revenue that we need to fund public services.

The reaction from Borders and Scottish businesses has been swift. The Scottish Hospitality Group said the Budget will cost hospitality businesses an average of £160,000. The Scotch Whisky Association said the increase on spirits duty was a hammer blow.

And the National Farmers Union of Scotland said the changes to the tax system on family farms will cause "huge difficulties" for farmers.

This change is really a Family Farm Tax and it will have devastating consequences for many Borders families. It will stop many families from passing on their farms to the next generation, make British food production harder, threaten food security by forcing farms out of business, and could lead to food prices rising in supermarkets.

Labour must change course and drop the Family Farm Tax now but, more than that, they must rethink their entire approach.

After Labour removed the winter fuel payment from many pensioners over the summer, this Budget has unfortunately only made things worse for Borders residents.

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