'Low key' Budget provokes a mixed reaction in Harrogate from politicians and business world

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Harrogate was divided in its reaction to what was described widely as a ‘low key’ Budget.

The town’s Conservative MP Andrew Jones praised the financial measures announced by Chancellor Jeremy Hunt which, he said, would “drive economic growth and strengthen resilience for the years ahead.”

Tom Gordon, his Lib Dem rival at the forthcoming General Election, condemned The Budget as a “desperate deception” with income tax bills still set to rise for most people.

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Matthew Chapman, the manager of Harrogate BID, which uses a levy from businesses to support and improve the town for businesses, visitors and residents, welcomed some of the Chancellor’s announcements but said it was “disappointing to not actually see any tangible support for the high street itself”.

Harrogate and Knaresborough MP Andrew Jones with the Chancellor Jeremy Hunt. (Picture contributed)Harrogate and Knaresborough MP Andrew Jones with the Chancellor Jeremy Hunt. (Picture contributed)
Harrogate and Knaresborough MP Andrew Jones with the Chancellor Jeremy Hunt. (Picture contributed)

What was in The Budget

National Insurance cut for workers from 10% to 8%.

The earnings threshold for child benefit raised to £60,000, from £50,000.

Alcohol duty was frozen and the previous 5p cut in fuel duty extended.

Tom Gordon, Liberal Democrat Parliamentary Spokesperson for Harrogate & Knaresborough, said: "Local residents will see through this deception by the Chancellor". (Picture contributed)Tom Gordon, Liberal Democrat Parliamentary Spokesperson for Harrogate & Knaresborough, said: "Local residents will see through this deception by the Chancellor". (Picture contributed)
Tom Gordon, Liberal Democrat Parliamentary Spokesperson for Harrogate & Knaresborough, said: "Local residents will see through this deception by the Chancellor". (Picture contributed)

The non-dom tax break, claimed by wealthy foreign residents in the UK, was abolished.

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The Household Support Fund for families in England was extended for six months, although charities’ had called for a two-year extension because of the cost of living crisis.

The windfall tax on the profits of oil and gas companies was extended until 2029.

The VAT threshold for small businesses was increased, from £85,000 to £90,000.

Matthew Chapman, Harrogate Business improvement District Manager, said:" Today's budget didn’t feel like it revealed any big surprises leading to an election. " (Picture Gerard Binks)Matthew Chapman, Harrogate Business improvement District Manager, said:" Today's budget didn’t feel like it revealed any big surprises leading to an election. " (Picture Gerard Binks)
Matthew Chapman, Harrogate Business improvement District Manager, said:" Today's budget didn’t feel like it revealed any big surprises leading to an election. " (Picture Gerard Binks)

Capital gains tax was reduced for the higher rate of property from 28% to 24%

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A new British ISA will be introduced to encourage people to invest in UK assets.

New taxes will be introduced on vapes and higher taxes for business class air travel.

What Harrogate and Knaresborough MP Andrew Jones said

"When the Chancellor delivered the Spring Budget last year inflation stood at ten per cent.

"Today that figure is four per cent and I am pleased that this, along with other positive economic indicators, has allowed him to further ease the tax burden for thousands of working people in Harrogate and Knaresborough.

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"There are many measures in this substantial and significant budget.

"One which stood out for me was the NHS productivity plan - £3.4bn of investment in IT systems which will free up clinicians to carry out more procedures and better communicate with different parts of the NHS

"Thanks to his sensible management of the economy the Chancellor has also been able to maintain the Household Support Fund for a further six months.

"I know that this has helped many households in my constituency who have struggled with the higher cost of living in recent times.

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"Following the cut already announced in last year's Autumn Statement today's news of a further cut for National Insurance Contributions means a saving of £900 for the average worker earning £35,400.

"There have been other measures to reduce the cost of living which include maintaining the cut in fuel duty and the freeze of alcohol duty which will also help the hospitality sector.

"The economic forecasts have been upgraded and there was some very positive news on investment from businesses, plus measures to boost business investment further.

"This was a budget which will drive economic growth and strengthen resilience for the years ahead."

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What Tom Gordon, Liberal Democrat Parliamentary Spokesperson for Harrogate & Knaresborough, said

"Local residents will see through this deception by the Chancellor.

"After years of income tax hikes, Harrogate and Knaresborough residents know that their tax bills will still be sky high after this budget.

"People don’t want more empty promises from this Conservative government while local health services are left on their knees.

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“This Budget will barely touch the sides for families and pensioners around here who are facing soaring mortgage bills while the cost of the weekly shop goes through the roof.

“People don’t want more Conservative empty promises while health services are on their knees.

"They are looking for proper change through a General Election so we can get this Conservative government out of office.”

What Matthew Chapman. Harrogate Business improvement District Manager, said

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"The Budget didn’t feel like it revealed any big surprises leading to an election.

"It was great to see a number of taxation cuts such as national insurance to provide people with a little more disposable income to support the high street, as well as, hopefully, encouraging more people back into work to fill the consistent recruitment vacancies our BID members have been wrestling with for some time.

"It was also promising to hear of the money to be committed for violent reduction units and hotspot policing.

"Anti-social behaviour is Harrogate BID members’ biggest challenge and we have been calling for action for more than three years.

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"We need to see more police officers on the streets, an easier and more proactive way of reporting and a police force we can rely upon.

"It was also disappointing to not actually see any tangible support for the high street itself and local businesses as we remain in a shallow recession with public funding at an all-time low.”

What the business world said

Responding to The Budget, Richard Bradbury, managing director of Theakston’s Brewery in Masham said:

“The UK already holds one of the highest excise rates in Europe.

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"Against a backdrop of continually rising running costs for pubs, we welcome the duty freeze on alcohol announced in the Chancellor’s Budget.

"From increases to the national minimum wage, rising energy costs and reduced spending due to the cost-of-living crisis, the pressures pubs face continue to mount so it is a comfort to know that at least one cost has been held.”

Fergus Bailie, Yorkshire & Humber regional chair for The Confederation of British Industry (CBI), said: "Overall, the budget announced by the Chancellor today feels cautiously net positive for UK businesses.

"But it’s also a missed opportunity where more could have been done to bolster the country’s economy.

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"It’s disappointing that corporation tax and employer’s National Insurance still remain so high and haven't been reduced, and will limit the amount that UK firms can then look to plough back into the business to invest in growth."

Commenting on the Budget, Tom Clougherty, Executive Director of The Institute of Economic Affairs, the free market think tank, said: “Today’s Budget tax cuts will provide some relief from the rising cost of living but, ultimately, they won’t do much to revive the stagnating economy that lies behind most of our current woes.”

What the social care sector said

The provider organisation The Independent Care Group (ICG) had previously urged the Chancellor to improve funding to ease the crisis in the care of older and vulnerable adults.

But social care was not mentioned when Jeremy Hunt delivered his Budget statement.

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ICG Chair Mike Padgham said: “Here was an opportunity to improve funding for social care, address the 1.6million people who can’t get care, the 152,000 staff vacancies and the ever-growing list of providers cutting back or exiting the market.

“But that opportunity was again ignored.”

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