OPINION: The Spending Review confirmed our worst fears; this government is spend today, tax tomorrow
Monthly Column by Blake Stephenson, the Conservative MP for Mid Bedfordshire
Unemployment is up. Public spending is up. Cost of living is up. Taxes are up. Borrowing is up. And economic growth continues to evade us. These are not positive signs for a government which inherited an economy growing faster than any other country in the G7 and inflation down to the Bank of England’s target.
The Spending Review this week was the perfect time for the Labour Government to hit the reset button and show they have listened to concerns of real people. People like business owners in Mid Bedfordshire, who have been hit with whopping National Insurance increases. Instead, the Chancellor Rachel Reeves has decided on a spend today, tax tomorrow plan.
Reuters report that the Spending Review set out by the Chancellor is worth more than £2 trillion of spending! And more spending means racking up more debt on the nation's credit card. Despite claiming just last year that ‘I’m not coming back with more borrowing or more taxes’, this week the Chancellor refused to rule out an increase in taxes at the Autumn Budget. Was this Labour’s plan all along, or has the Chancellor been forced into tax hikes because of her own poor policy decisions?
I have met businesses across Mid Bedfordshire, and they have been telling me how government decisions on tax have been affecting them and their staff. And it is not just tax increases. Hospitality businesses have seen their rates relief dramatically reduced by the government and we are now seeing around six pubs a week across the country shutting their doors for good. The proof is in the pudding. You cannot tax your way to growth and prosperity.
Our country has been treading this path for too long. And rather than doubling down, we need our government to control public spending and get our economy firing on all cylinders. with businesses at its heart rather than red tape and tax.
The government talks a good game on jobs and growth, but its actions could not be more contrasting. While families tighten their belts, Labour are losing control, spending today and taxing tomorrow. Prepare for the Chancellor to come back for more.