Opposing political parties in Watford have hit out against the “complete sham” mini-budget introduced by the Conservative government.

Last week Chancellor Kwasi Kwarteng announced that the government will benefit 31 million people with an average £170 a year reduction in tax in April 2023.

The basic income tax rate is cut by 1p to 19p and has been scrapped the 45% additional rate of tax, which is paid by people who earn more than £150,000 a year.

The 1.25% National insurance rise is to be reversed from November as well as new stamp duty rates introduced.

Universal credit rules have tightened and energy bills have been frozen which is claimed to reduce inflation by 5 percentage points.

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Speaking out against the announcement, Watford Labour candidate Matt Turmaine deemed the mini-budget “reckless”.

He said: “The Tories are gambling with our money, funding tax giveaways for the richest by borrowing money and increasing our national debt, just as rocketing interest rates means the cost of doing so is rising.

“They are the same old Tories – the rich get richer, and we all suffer. If you earn £1million, you’ll gain £55,220 per year. If you’re on £20,000, just £157 is coming to you. And that will be more than eaten up by increased council tax, food bills, petrol prices and other inflation.”

Watford Observer: Matt TurmaineMatt Turmaine (Image: Matt Turmaine)

Cllr Ian Stotesbury, of the Liberal Democrats, stated: “Dashing Britain’s prosperity for the sake of a tax cut for those over £155k is immoral.”

He said that the Conservatives were on “another planet” and added they: “Choose this time to make a targeted tax cut to the rich to give bonuses to bankers and to release profits on companies when we could be investing that money to reduce our bill for insulation to invest in renewable energy for futures, to invest in our healthcare system that so desperately needs it.”

However Watford MP Dean Russell described the mini-budget as a “clear plan for economic growth” and a vision to “unlock the huge, untapped potential of the UK”.

Watford Observer: Dean RussellDean Russell (Image: Dean Russell)

The Conservative MP said: “Through the Energy Guarantee, from October 1, the Government is ensuring that there is a cap on the price customers and businesses can be charged per unit of gas or electricity.

“All these announcements will have a long term beneficial impact on people across the country. This global cost of living crisis does not have an easy solution, but this government is taking decisive and measured action.”

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