Measures designed to generate billions for public services, protect working people and grow the economy, were announced by the Government today.
Reacting to the Government’s Autumn Budget, Councillor Chris Whitbread, Chancellor of Essex, said:
The Government has positioned this as a budget for working people and confirmation today that there will be an increase in the National Living Wage, but no new increase in income tax for many, will be welcome news.
“It is also reassuring to hear that the new Government’s plans are very much aligned to what we are already doing in Essex in respect of growing the local economy, using technology in the delivery of public services and prioritising maintenance of our roads.
“However, today’s budget has also left us with some questions, particularly in respect of the implications of tax increases, such as National Insurance contributions from employers. This, along with increases in other areas, such as National Living Wage and reduction of business rates relief, will undoubtedly have a negative impact on local businesses and also increase the cost of delivering services for local councils.
“The budget announced today will not help us meet these costs and so this will undoubtedly mean more difficult decisions for us in the future as we are forced to look for additional local cost savings. The knock-on effect of the measures announced for local government means we could potentially be faced with a ticking timebomb in the future.
“While announcements of additional funding for key areas such as education, SEND, further investment in the Household Support Fund and more money for local government are of course welcome, they won’t go all the way in solving the financial challenges we currently face.
“The devil is also in the detail and it will be interesting to see what these and the other investments announced today mean in real terms as more information is shared in the coming days.”
Speaking specifically on the news that there will be a rise in the bus fare cap, Councillor Whitbread added:
Bus services are a lifeline in rural areas and so any price increase – and this is a 50% increase – will not be welcomed by passengers on already stretched incomes, but we are pleased to see a retention of the cap on fares until the end of 2025.”