Last week the new government presented their budget to the House of Commons. Objectively it was the biggest tax raise and increase in borrowing ever seen in UK peacetime. Taxes will rise by £40 billion and the amount the government borrows will increase by £140 billion over the next five years. That’s over £4,000 more debt for every working person.
Aside from the general sense of broken promises, constituents have raised five particular concerns with me so far.
The first is the ‘family farm tax’ which will subject farmers handing their land to the next generation to inheritance tax. In West Sussex almost every farm will fall within scope putting at risk those who produce our food and protect the landscape. Second is worry about inheritance tax grabbing 40% of an undrawn private pension on an early death - something which seems not to apply to the few with generous public sector pensions.
Third, there is a great deal of anxiety around what VAT on independent school fees will mean for children with special needs who may be thrown back into state schools which are already overstretched. This will hurt all children through spreading resources thinly, not just those whose parents have made sacrifices to use independent schools.
Our High streets are the centre of our communities, full of small businesses swimming hard against the tide of online sales. Regrettably, the budget included a hike in business rates for many. When I think of small towns such as Henfield, Storrington and Midhurst, this is a big issue and could be the final straw for many.
Finally, at a time we should be building more homes in our cities to give young people the chance to get on the housing ladder, I was saddened to see an increase of stamp duty for first time buyers which can only make that harder
