The chancellor, Jeremy Hunt has unveiled the government’s financial plan in one of the last, major policy announcement ahead of the general election.
Mr Hunt’s headline announcement was a 2p cut to national insurance, matching a reduction announced in the autumn statement, alongside a series of measures to help hard-up households with the cost of living.
The Chancellor also said he would maintain the 5p cut, freeze fuel duty for a further 12 months, abolish the special tax status for non-domiciled individuals in the UK and the extension of the windfall tax on the profits of oil and gas producers until 2029, with the aim of raising £1.5 billion in tax.
The budget has been welcomed by Carlisle’s conservative MP, John Stevenson.
“I think the chancellor has been sensible because you've got to grow the economy,” said John.
“Once you grow the economy, we can have, further reductions in taxation and further increases in public sector investment, so he's got to get that sort of balance right, which I think he broadly did.”
This one of the last opportunities for the government to set out its legislative agenda ahead of the general election, but Mr Stevenson was coy when asked if it was an ‘election winning’ budget.
“I don't think budget should be seen in isolation,” said Mr Stevenson.
“It's not just about the fiscal changes that you have, it's also the wider policies that you have and you've seen an awful lot of investment going into Carlisle and continuing to go into Carlisle.
“And it's a combination of the two that will bring about improvements in people's living standards in places like Carlisle.
“So you've got to see it as just part of a narrative, not as an individual event in its own.”
The budget has been roundly criticised by the opposition parties with the Labour leader, Sir Keir Starmer calling it a "last desperate act" with people paying "more and more for less and less".
"The gulf between the Chancellor's words and the reality of people's lives in and around Carlisle could not be starker,” said Labour candidate for Carlisle, Julie Minns.
“Taxes are still rising; prices are still going up and mortgages are higher. Earlier this week I spoke with a local health service worker who is barely making ends meet.
“Despite cutting back on every single thing she possibly can, her energy costs and mortgage have pushed her to breaking point. And nothing Jeremy Hunt said today changes that.
“'Pay more, get less', that's the reality after 14 years of sticking plaster, party-first, country-second politics. It’s time for change. It’s time for an election."
Carlisle’s Liberal Democrats have labelled the Chancellor’s budget announcement today a “desperate deception” ahead of the election.
“This Budget will barely touch the sides for families and pensioners around here, who are facing soaring mortgage bills while the cost of the weekly shop goes through the roof,” said Cllr Brian Wernham, Liberal Democrat candidate for Carlisle.
“People in Carlisle know that their tax bills will remain sky high after this budget, and the Chancellor is attempting a desperate deception after years of income tax hikes.
“People don’t want more Conservative empty promises while our local health services are left on their knees.
“They want proper change through a General Election so we can kick this Conservative government out of office.
The Green Party candidate for Carlisle has also criticised the chancellor.
“Another budget that saw yet another multi-millionaire holding a little red box to symbolise that absolutely nothing will be done to redistribute wealth in this country,” said Gavin.
“A further cut to capital gains tax is another giveaway to the very richest people in society.
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“It would have been far better to implement a wealth tax to start to fund the investment that this country desperately needs. We can’t continue with cuts when every public service we all rely upon is at breaking point after years and years of Conservative Party austerity”.
"It is a real shame to see Conservative, Labour and Lib Dem all oppose a wealth tax. Despite the comments from the other candidates here there appears to be very little in the way of real political opposition when it comes to austerity 2.0 that is around the corner.”
The general election must be called before December 17 2024.
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