The UK has now had a Labour Government for 9 months. In that short time, things have got significantly worse for people, including those of us living in Wokingham Borough.
On Tuesday, the cost of bills like energy, water, broadband, and TV licences all went up. At the same time council tax bills, capital gains and vehicle taxes have also risen. The additional cost of these increased bills means that the cost of living is expected to rise by £1,191. On top of this, the increases in National Insurance contributions for 940,000 employers across the country take effect from this Sunday, leading to higher prices and jobs losses.
Labour has quickly become fond of blaming everyone but themselves for their choices. However, these decisions can all be traced back to Sir Keir Starmer and the Chancellor of the Exchequer, Rachel Reeves.
Back in October, the Chancellor announced she would increase National Insurance contributions for employers, breaking a Labour manifesto commitment not to put up this tax. The Office for Budget Responsibility (OBR) estimates that 60 percent of the higher costs to employers will be passed on to consumers and workers, with tens of thousands of jobs cut as a result. The Chancellor has also refused to exempt some public sector organisations, meaning that in Wokingham Borough, the Council will need to spend millions of pounds more just to hand to the Government in tax on social services.
Despite Labour’s claims that they want to help people get on the housing ladder, they’re actually making it harder and more expensive. The threshold at which stamp duty kicks in has dropped from £425,000 to £300,000 for first-time buyers, and from £250,000 to £125,000 for those who already own a home. This comes at the same time as Angela Rayner, the Deputy Prime Minister, wants to take away councillors’ abilities to stop unsustainable development. Under Labour, it’s pay-day for developers.
Alongside the direct taxes that Labour are putting up, there are also costs that are increasing because of the party’s broken promises. During the election, Starmer and Ed Miliband told the public that under a Labour Government, their policies would mean that energy bills would be cut by £300. Energy bills are now expected to rise by an average of £111. Thames Water bills are also expected to go up by £204.
Labour promised that they would ‘freeze’ Council Tax. However, the Liberal Democrat administration running Wokingham Borough Council have increased the WBC element of the average Band D Council Tax bill by £91.78 for the year. This adds a further cost.
Last week, the Chancellor had to deliver a number of changes to the policies she set just 6 months ago, after it became clear they wouldn’t raise as much money as she claimed. It is also forecast that the UK’s growth will now be a tiny 1%.
All this indicates that there is more to pain to come. When the next Budget comes along in October, we can expect to see even higher taxes and cuts to public services. You pay for the consequences of Labour’s decisions.
Locally, your Conservative councillors believe Council services should be getting better, and the impact on residents should be minimal. We will continue making the case for better and more efficient services delivered with value for money.
