Mixed reactions have been expressed from MPs across London following Chancellor Kwasi Kwarteng’s mini-budget this morning.
Kwarteng, who has been in the job for less than three weeks, has hailed a ‘new era’ for economic growth in the biggest tax cutting exercise since 1972.
Key policies include reversing the increase in National Insurance, which the Treasury believes will create new low-tax investment zones across the UK.
The Chancellor has also raised the threshold before stamp duty is paid to £250,000, while first time buyers won’t pay a duty on anything below £425,000.
Additionally, the Truss administration announced that the basic rate of income tax will become 19p and removed the current 45% top rate of tax for high earners. However, this does not apply to Scotland.
The government believes that borrowing will boost growth and benefit society as a whole.
However, the shadow chancellor and Labour MP, Rachel Reeves, labelled the measures: “Casino Economics – gambling the mortgages and finances of every family in the country.”
Similarly, the shadow foreign secretary, Labour MP David Lammy, tweeted that it will be “working class people who are being left to pick up the bill in the middle of a cost of living crisis.”
Labour MP for Enfield North, Feryal Clark, criticised Kwarteng’s trickle-down economic policies, stating that in her constituency “almost a third of children live in poverty.”
Conservative MPs across the city have been quick to defend this morning’s mini-budget.
Chris Philp, Conservative MP for Croydon South tweeted that the Chancellor’s new growth plan will “benefit everyone across the whole country.
“Growth will help raise wages, create jobs, lift incomes and generate more tax revenues.”
Similarly, Sir David Evenenett, MP for Bexleyheath and Crayford, positively received the government’s policy on GP appointments.
He said: “Warmly welcome the Government’s Plan for Patients to deliver more GP appointments, recruit additional support staff… and deliver a £500 million Adult Social Care Discharge Fund.”
The Conservatives have claimed these fiscal approaches will end the ‘cycle of stagnation’ seen in the UK, with some of the biggest interventions since the Covid-19 Pandemic.
However, Liberal Democrat leader and MP for Kingston and Surbiton, Sir Ed Davey, branded the policies as “so out of touch they may as well be living on another planet.”
Fellow Liberal Democrat and MP for Twickenham, Munira Wilson, echoed Davey’s comments, with both highlighting the mismatch between ‘city bankers’ and ‘struggling families’ in London.
Wilson has branded today’s mini-budget as “completely out of touch with families across Twickenham.”
The Women’s Equality Party, who were very active in the local council elections in May also criticised the budget.
WEP leader, Mandu Reid, tweeted that today’s mini-budget tax cuts: “will overwhelmingly benefit the richest.
“Meanwhile, we have more food banks than branches of McDonalds and they can’t keep up with demand.”
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