Star comment: Spring Statement brings little cheer

Chancellor Rishi Sunak finds himself in a near impossible position. The UK is beset by stagflation as growth slows and inflation increases. The cost of living is spiralling and those on the lowest incomes are sinking further into poverty.

At the same time, he has to pay for the two-year Covid-19 crisis and face up to the reality that the cost of the UK’s debt repayments are a staggering £83 billion. Having helped businesses and individuals alike, his spring plans were a dose of reality as we face up to the fact that we are a nation in economic difficulty.

Those on the lowest incomes might reasonably echo the MP who shouted: “Is that it?” as the Chancellor concluded his statement. The three per cent fall in fuel prices, brought about by a 5p cut in duty, will have very little impact at a time when fuel prices have risen this year by around 33 per cent - or, ten times as much as the windfall.

The cut in National Insurance contributions will help some, though those on the lowest incomes will receive considerably less benefit than those on middle and higher incomes.

His promise of a 1p cut in income tax will be welcome by all, though we must wait two years for it to be introduced.

Chancellor Sunak has, however, resisted calls to introduce a windfall tax on the energy companies who are raking in record profits and are in part responsible for the cost of living crisis. They have escaped reasonable calls to pay more and instead can look forward to record profits for shareholders.

Here in the West Midlands, working families might wonder what’s in it for them as the burden of a cost of living crisis is not eased by the Chancellor’s mixed bag.

On the issue of National Insurance, he is taking with one hand while giving with the other; pressing ahead with a planned increase to pay for social care and the NHS while making a £300 concession to those on moderate incomes.

Business is helped little by the Chancellor’s statement and it is clear that the Government already has its eyes on the General Election that will come in two years. With the Prime Minister focusing on international affairs and with Mr Sunak promising to sweeten a general election by cutting income tax, the strategy is clear.

For people on the lowest incomes, the spring statement helps not. Those unable to find work or reliant on benefits are being pushed deeper into debt. The daily choices between food and fuel and becoming more and more severe and we are becoming a society reliant on hand-outs, charity and the benevolence of community groups.