In an increasingly uncertain and changing world, this Labour government is steadying the ship and outperforming the rest. This budget will help families with the pressures they face now, and invest in the long-term to bring down the cost of living and make life easier and better for working people, whilst always meeting the fiscal rules.
The actions and policies of this Labour government are working. Britain has defied the forecasts and has delivered the second fastest growth in the G7. Our growth forecast for 2026 was once again upgraded, despite the choppy global waters and the doom-laden predictions of some.
We have done that at the same time as building massive amounts of homegrown renewable energy, holding failing water companies to account, a revival in council house building, a record increase in the minimum wage, bringing half a million children out of poverty and delivering a record spend and reduction in NHS waiting times.
There is of course much more to be done. Russia’s illegal invasion of Ukraine, and Trump’s ill-advised war on Iran have driven up fuel prices, energy prices, and the cost of fertilizer, creating cost of living crises across the globe to which we are by no means immune.
In that context, I welcome the Chancellor’s priorities in this budget to give families and businesses breathing space from rising costs, with action on energy bills, fuel duty, and wages, and to invest to get Britain building and growing, backing homes, high streets, and British businesses.
One area in which I was disappointed, however, was that today’s Budget did not return the last of the surpluses from the Mineworkers Pension Scheme to its members, as last year’s Budget did for the British Coal staff scheme. I urged the Chancellor to look at this again in Parliament, and I will continue to advocate for this on behalf of many of my former mineworker constituents.
However, on balance this was a very positive budget: to help households with energy bills this winter, the government is providing a £100 Household Energy Payment for all households in bands A to D, which includes 43,800 households in Chesterfield. This is on top of the VAT cut on electricity bills announced earlier this year, and the abolishment of gas standing charges. This will be paid for by temporarily increasing the tax on bank profits from 3% to 6%. This will make a real difference to people this winter.
The government is also extending the 5p cut to fuel duty for a further six months, increasing the number of tax-free miles to support around 2 million employees and 1 million self-employed people across the UK, and cutting the cost of public EV charging.
To ensure all people have safe and secure housing, the Chancellor is providing a further £1.5 billion to build social and affordable housing, bringing the total capital investment to over £40 billion over the next 10 years. This is the biggest council housebuilding drive in a generation. To help people onto the property ladder, the government is introducing a new scheme for first time buyers, and a new First Time Buyer ISA. And to deliver the Prime Minister’s commitment to end rough sleeping for good, today’s Budget pledges a further £432 million over the next two years.
I was also delighted to see the Budget back small businesses and high streets. All retail, hospitality and leisure (RHL) properties will have their business rates either frozen in real terms, reduced, or cut to zero, benefiting around 404 RHL properties in Chesterfield. This is on top of the 20% business rates cut for pubs and music venues announced in July. This will be paid for by increasing gambling tax on higher-risk machines (rather than those in pubs or arcades) and tackling non-compliance on online marketplaces. Vape shops and adult gaming centres will also no longer benefit from certain business rates reliefs.
This Budget is also investing in Britain’s future growth and resilience, through increasing the investment for the National Wealth Fund and the British Business Bank, getting major infrastructure built, backing entrepreneurs and founders, and transferring power and resources to local leaders to drive growth in their communities. For Derbyshire and the East Midlands, that means an opportunity to build on our strengths, support local entrepreneurs and attract investment that creates jobs.
I know the Chancellor, as previous Secretary of State for Defence, takes the security of the nation extremely seriously, and I was pleased to see him fulfil his commitment to fully funding the Defence Investment Plan. He also committed to setting out the details next spring of how Britain will meet our NATO commitment of 3.5% of GDP on defence by 2035.
This Labour government has taken the fair choices that maintain economic stability, ease the cost of living pressures on working people, and invest in Britain’s long-term security, resilience, and prosperity. The actions set out in this Budget and the direction that the Chancellor has laid out for the future has given me hope, and I am keen to hear from my constituents about what they think of the Budget.