Andrew Jones MP has said today’s autumn statement will “benefit businesses here in Harrogate and Knaresborough and boost the pay packets of tens of thousands locally”.

However, the Liberal Democrat hoping to replace him at the next general election said Chancellor Jeremy Hunt’s statement amounted to “empty promises and stale nonsense”.

Mr Hunt’s hour-long statement this afternoon included cutting the main rate of National Insurance contributions from 12 per cent to 10 per cent, increasing the state pension by 8.5% from April 2024 to £221.20 and a reduction in business rates.

But next year’s economic growth forecast was downgraded from 1.8% to 0.7%.

Andrew Jones

Mr Jones, the Conservative MP for Harrogate and Knaresborough, said:

“This was an impressive autumn statement delivered by a Chancellor who understands his brief.  Mr Hunt announced a series of measures which will benefit businesses here in Harrogate and Knaresborough and boost the pay packets of tens of thousands locally.

“The cut to national insurance contributions and the increase to the national living wage will put more cash in the pockets of the least well-paid.  This is very important in an area like ours that depends on the often less well-paid hospitality sector.

“The hospitality industry will be further supported with a freeze in alcohol duty and by the changes to business rates and hospitality and leisure relief.”

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Tom Gordon

Tom Gordon, the Liberal Democrat candidate for Harrogate and Knaresborough at the next election, accused the government of being “content with local health services crumbling” by failing to provide additional funding for local health services.

The party had called on the Chancellor to invest in a NHS rescue plan and inject £20 million into repairing crumbling concrete at Harrogate District Hospital.

Mr Gordon said:

“This Conservative government seems completely content to sit back and allow Harrogate and Knaresborough’s local hospital to crumble. They are either so out of touch they cannot see how many people are struggling to access healthcare, or they simply do not care.

“The Autumn Statement was an opportunity to get people off NHS waiting lists and allow them to return to work so we can rescue our flatlining economy. Instead we got empty promises, stale nonsense and a tax cut that’s not even a drop in the ocean compared to what people have already paid.”

Local organisations are in unison with their reaction to the autumn statement, warning there will be a ‘tough winter’ ahead of us.

Small businesses are expected to struggle as result of this morning’s autumn statement, with consumers predicted to cut disposable spending.

Harrogate District Chamber of Commerce chief executive David Simister said the statement was “exactly as previewed”:

“Whilst it will no doubt have reassured the markets, there seems very little to support businesses when they need it most.

“The cost of running business will continue to rise and these increases will have to be passed on to the customers, who in turn are worse off with soaring inflation and eye watering energy prices…

“I’m afraid to say many businesses are looking at a very bleak future.”

David Simister

Harrogate BID chair Sara Ferguson echoed the chamber’s projection:

“There was little in today’s autumn statement to boost our high street economy… Everyone is going to have less disposal income, this will mean consumers pairing back on their spending, which will shrink the economy further.”

Mr Simister and Ms Ferguson also agreed that the £13.6 billion business rates relief package would help soften the blow of April’s expected rise.

Sara Ferguson

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Ripon BID welcomed some elements of the statement, such as the increase to pensions and benefits in line with September’s inflation rate as well as the early news of the rising national living wage for over-23s.

In a statement, the organisation said:

“The UK falling into recession was expected and Ripon BID hopes that the chancellor’s measures to reduce inflation will be in his words ‘as short and shallow as possible’, however we would welcome any help available to businesses from the government and urge them to come up with non-inflationary measures which would aid them.

“Now more than ever it is important that we try and support our local businesses by shopping locally and giving support to our Ripon city region independents.

“Ripon BID is here to help BID businesses and would urge those businesses to get in touch with us to enable us to help promote their business and any promotions over the festive season and into the new year.”

Chancellor Jeremy Hunt delivered the autumn statement earlier today. Millions across the country will face rising taxes and Mr Hunt spending cuts have been made to “tackle the cost of living crisis and rebuild our economy”.

A consultation is being launched today on what the new North Yorkshire Council’s funding priorities should be, amid stark warnings about its economic situation.

North Yorkshire Council will come into existence on April 1 when the seven district councils, including Harrogate Borough Council, and North Yorkshire County Council, are abolished.

The postponement of the Chancellor’s autumn statement means the new local authority still doesn’t know how much funding it will be allocated by national government.

In addition, the new authority is expected to start life by inheriting a £27 million deficit from the eight councils it is replacing. Rising inflation is also believed to have added an additional £70 million in costs.

Against this backdrop, county council leader Carl Les said the budget for the new authority will be the most challenging he has witnessed.

Cllr Les, who will become the leader of the new North Yorkshire Council, said:

“These challenges for the forthcoming financial year are the greatest I have ever known, caused by a succession of issues that, taken in isolation, would present significant problems to overcome in themselves.

“We have launched the consultation to give the public the chance to highlight what they believe are the financial priorities which the new North Yorkshire Council should be focused on, and it is so important that we hear those views to help us form the budget for the authority.”

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Cllr Les added that the restructuring of local government in North Yorkshire “could not have come at a more prescient time amid all the challenges we are facing” because merging eight councils and streamlining services “will be invaluable in ensuring that budgets can be balanced”.

He believes the restructure could lead to savings of up to £70 million a year.

North Yorkshire County Council alone has had to make savings of £200 million since 2010 from an original net budget of £520 million, excluding funding for schools – equating to a 40 per cent reduction in spending.

North Yorkshire Council will serve the greatest geographical area of any local authority in the country, and it will have an overall spend of about £1.4 billion, including £343 million on schools.

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