This week inflation rose to 3% – a ten-month high. This means higher prices and further pain for household finances, thanks to the Labour Chancellor’s record tax hikes and inflation busting pay rises for public sector workers like train drivers. This follows the UK economy growing by a tiny 0.1% at the end of last year, after Labour’s Autumn Budget.
The Federation of Small Businesses has said “larger small, and medium-sized businesses will struggle with the rises in employer national insurance”. Labour economics are turning out to be a disaster for households, businesses and also Wokingham Borough Council.
This week the Liberal Democrat administration of Wokingham Borough Council will set their first Budget under a Labour Government. So far, Labour in Westminster has left our Borough worse off than under the Conservatives.
Sadly local Labour councillors have tried to defend their Party’s policies which sees us lose out financially.
Employment taxes are increasing for every member of staff Wokingham Borough Council employs. The Council will have to pay £1.5 million more in national insurance to central Government. Costs will also increase for our suppliers. Combined, this will cost the Council an additional £3 million with no benefit to residents.
To cover this extra cost, despite promises to compensate us, the Government has provided just £1.2 million. At the same time, the Labour Government have cut the Council’s funding by a further £1 million. bringing the total cost to Council Tax payers to £4 million. Last year in contrast, under the previous Conservative Government, the Council received an additional £2.3 million.
Despite a question submitted by a former Labour councillor claiming the Government is giving more money, the Council will actually be £2.8 million worse off as a result of a Labour Government. Almost £3 million that Wokingham Borough taxpayers will have to hand over to Westminster to spend in other parts of the country.
Before the election I warned that Wokingham would lose out financially to other areas under a Labour Government. It is typical Labour fantasy economics – give money with one hand, but take more away with another.
If that wasn’t enough, Labour has had a go at coming up with other policies to make things worse for Wokingham Borough. The decision to almost double our area’s housing target not only means that more money will need to be found in future years to meet the cost of an unsustainable number of new people. In the more immediate term, the Council will be forced to go to the expense of producing another Local Plan. This will add costs of £1.5 million over 3 years.
The Labour Government is also relentlessly pursuing a top-down reorganisation of local government. This could see Wokingham Borough disappear into a monster council covering a vast area of the country, with the wishes of our small towns and villages ignored in favour of larger, urban areas and Council Tax paid by our residents potentially spent on services areas such as Reading and Slough. Council officers’ time – and Council Tax payers’ money – is being diverted from running important services into messing about with administration.
Under Labour and the Liberal Democrats, things are going backwards for Wokingham Borough. Real change is needed, and you’ll only get that with the Conservatives.
Cllr Pauline Jorgensen is leader of Wokingham Conservatives
