Opposing views from mid Wales on the Government's Spring Statement

Conservative MP for Montgomeryshire, Craig Williams, Parliamentary Private Secretary to the Chancellor of the Exchequer, said the new tax plan took a principled and disciplined approach in delivering the biggest cut to personal taxes in over a quarter of a century, with lower taxes and a large package of support to help working families in Montgomeryshire with the cost of living.

“This includes the largest ever cut in fuel duty; a rise in the National Insurance contribution threshold worth £330 a year; and a cut in income tax worth £175 per year, on top of support measures previously announced," he said.

“The UK Government is only able to provide today’s support because of the tough but responsible decisions we have taken to repair public finances and ensure our economy recovers strongly. This has seen the UK become the fastest growing economy in the G7 last year, with record job vacancies and unemployment back at pre-pandemic levels.

“There are of course concerns regarding inflation and rising interest rates, with rates forecast to peak at 8.7 per cent. This, coupled with interest repayments on the UK’s debt, is why it is vital that the Government must remain responsible on public spending and finances, especially in the face of high economic uncertainty. The Treasury will therefore also establish the Cabinet Committee on Efficiency and Value for Money, which will aim to prevent £5.5 billion of public finances waste.

However Welsh Liberal Democrats, say the statement contained nothing of significance to help people in rural areas deal with the cost of living crisis, particularly the extortionate costs of heating faced by those living in rural Wales.

Leader Jane Dodds MS said: “The cut to fuel duty is welcome, but only will take between £2-£3 off filling your car. It alone does not rise to the occasion. What we would have liked to have seen was the rural fuel duty relief scheme expanded to parts of Wales like Ceredigion, Powys and Gwynedd. We have been calling for this since 2015, but have been blocked by the Conservatives at every point.

“More importantly, the Chancellor has refused to introduce a windfall tax on oil and gas companies that we would want to use to double and expand the warm homes discount. Oil and gas companies are making record-breaking profits while the rest of us are suffering.

“This is especially true in Mid & West Wales where in some counties up to 23 per cent of households live in fuel poverty.

“Finally, the Chancellor made no announcement to protect those reliant on heating oil and LPG. With large numbers of households across rural Wales off the national gas grid, the bare minimum the Government could have announced was a plan to include oil and LPG into the energy price cap or to implement an automatic fuel duty rebate if the price of heating oil reaches over certain levels."