The budget last week was not good news for many residents of the South Downs. The ‘headlines’ were that debt is up, borrowing is up, growth is down, and taxes are going up.
Major changes included a freeze on income tax thresholds meaning that an additional 1.7 million people will either start paying income tax or pay a higher rate on top. Also, higher taxes on landlords, dividends and a lower cash ISA limit plus fuel duty to rise from next September and a new pay-per-mile charges for electric car drivers. All told, there were £26 billion of tax rises. There was also no hoped-for alteration to the previously announced family business and family farm ‘death’ taxes, nor the imposition of VAT on independent education. One of the small positives was the success of a campaign which I had supported not to raise tax on betting at racecourses such as Fontwell and Goodwood which would have badly damaged that sector.
The Chancellor’s new tax on properties over £2 million is likely to hit many local elderly residents whose properties – or farms – have not been revalued or sold for decades. At up to £7,500 every year, this would be a huge £37,500 over five years. Bad enough if you are working: much worse if on a fixed pension. I calculated recently that up to 40,000 households in Chichester, Horsham and Arun Council areas might be targeted for the surcharge based on council tax bands F, G and H. Not all of these will fall into the charge but many will.
Finally, there was bad news for pubs, restaurants and high street shops. Ministers claimed to offer a ‘permanent’ business rates discount, but the reality was a 5p cut in the multiplier, barely a quarter of what was promised, whilst pubs face rateable value increases of around 30%. UK Hospitality has warned that for many, this will mean cutting hours, shelving investment, and possibly even full closure.
