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Mar 2021

Last Updated: 03/03/2021

Politics

Chancellor's budget does not go far enough, say opposition parties

by Calvin Robinson

| 03 Mar, 2021

Opposition parties in the Harrogate district have reacted to Chancellor Rishi Sunak's budget today. They say more action was needed on the future of the high street, NHS staff and the climate.

Chancellor Rishi Sunak unveiled his budget today, which included an extension to the furlough scheme.

Opposition political parties in the Harrogate district have said the Chancellor’s budget does not go far enough to help businesses, NHS staff and the climate.

In his Budget statement today, Rishi Sunak extended the furlough scheme and announced extensions to the business rates holiday and 5% VAT cut for hospitality and tourism.

He unveiled an extra £400 million in grants for the arts sector and £5 billion in financial support for high street shops and other businesses.

But, Cllr Pat Marsh, leader of the Liberal Democrats on Harrogate Borough Council, said the budget did not go far enough to help businesses and the future of the high street.

Cllr Marsh said:

“The Future High Streets Fund needs to be expanded to help more than the 72 areas already in receipt, far below what is actually needed in England. Our towns need help to recover from the pandemic and need help to deliver ambitious regeneration plans.

“Maybe the Chancellor could make it as easy as possible for entrepreneurs to set up on the high street, by offering grants for low-cost incubation space and business support for start-ups.

“Temporary pop-up units should be available for start-ups to trial new products and services without being tied to long rents. This is about investing in our future.”

Meanwhile, the Harrogate and Knaresborough Labour Party said businesses may still find it difficult to balance the books during furlough.

Margaret Smith, chair of the local Labour Party, said it welcomed the extension to the scheme but added that some firms, such as pubs and restaurants, will find it tough once they have to contribute towards furlough.

She said:

"Businesses within those specific sectors, having to contribute towards furlough payments of 10% from July and 20% in August and September, might still find balancing the books extremely difficult. The impact on employers has a knock-on impact on employees.

“Therefore, unemployment is expected sadly to increase even more. The increase in Universal Credit by £20 per week is also only being extended for six months so the autumn does not bode well for a significant number of people.

“Although furlough has been extended, the Labour Party thinks it would have made more sense for it to have been targeted on firms that actually need it – “smart furlough” and made it conditional on firms signing up to industrial and environmental standards and with greater support for training built in.

“In addition, what is significantly missing from today’s Budget is any reward for key workers such as NHS staff."

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Shan Oakes, chair of the Harrogate and District Green Party, said there was nothing to support the climate or biodiversity in the budget.

She said:

“First, we welcome any measures which genuinely help those who have been hit socially or economically by covid. This must be a priority. But I can see nothing in support of biodiversity, nature, or the climate.

"We would hope for encouragement for green business initiatives at the very least, but there's nothing at all here, just green investments and yet another green bank, as we have seen before, but we do hope they do mean something this time. We should be focusing on helping grassroots with green initiatives that benefit communities.”

The Stray Ferret contacted the district’s Conservative MPs Andrew Jones, Julian Smith and Nigel Adams for comment, but none responded by the time of publication.

We also contacted the Conservative leader of Harrogate Borough Council, Cllr Richard Cooper, but did not receive a response.

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Chancellor's budget does not go far enough, say opposition parties

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