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.”

A Harrogate business organisation has said a new business rates valuation will see the majority of local firms pay less.

Following a government review, Chancellor Jeremy Hunt decided to progress with new valuations of properties as part of his autumn statement.

An online service is available to show firms whether their rates will increase from April 1, 2023.

Sara Ferguson, chair of the Harrogate Business Improvement District, said she welcomed the review by government.

She added that while some businesses will see their rateable value rise, they will still receive support from government.

Ms Ferguson said:

“For a number of years, Harrogate BID has been asking the government to review business rates, and I’m really pleased this has now happened.

“Looking at the website, it appears that the majority of the business have seen their business rates reduced, which will be a relief to many, particularly with the rise in fuel, raw materials and energy costs.

“And for those that have seen their rate rise, those at the lower end of the scale will still benefit from rate relief, with plenty of small business not paying anything at all.”

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Last week, Mr Hunt announced £13.6 billion worth of business rates relief targeted at businesses that may see their rates increase.

Mr Hunt said the move would help to “soften the blow” for businesses with new valuations.

Business owners can check their valuations on the government website here.

There is uncertainty over the future of planned investment zones in the Harrogate district after the government announced it will “change its approach” on the policy.

Three sites were earmarked in the district for the zones, which were a key policy under former Prime Minister Liz Truss’s administration.

The sites include junction 47 of the A1 near Knaresborough, business park Potter Space Ripon at junction 50 of the A1, and Harrogate Convention Centre.

The government said previously that the zones, which would have received liberalised planning laws and tax incentives for businesses, would support economic growth.

However, Chancellor Jeremy Hunt yesterday announced in his autumn statement that the scheme would be focused towards research.

He said:

“I will also change our approach to investment zones which will now focus on leveraging our research strengths, to help build clusters for our new growth industries.

“My right honourable friend the Levelling Up Secretary will work with mayors, devolved administrations and local partners to achieve that with the first decisions announced ahead of the spring budget.”

According to Treasury documents, the government intends to “refocus the investment zones programme” and use it to “catalyse a limited number of the highest potential knowledge-intensive growth clusters”.

The document added that, as a result, the expressions of interests submitted by councils “will therefore not be taken forward”.

The news comes after Cllr Carl Les, leader of North Yorkshire County Council, admitted on Wednesday that he did not expect the zones to progress.

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The county council was named as one of 38 local authorities in talks with the government over creating investment zones back in September.

The authority then earmarked 12 commercial sites as part of an expression of interest for the scheme.

However, Cllr Les told councillors at a meeting on Wednesday that he did not expect the initiative to go any further.

He said:

“I have to say I don’t think that investment zones are going to proceed.

“The Secretary of State is reviewing them and they will not go forward.”

More measures are needed to help North Yorkshire County Council’s finances despite support from government on council tax, says the leader of the authority.

Cllr Carl Les said the council needed grants from central government in order to help balance its books.

His comments come as Chancellor Jeremy Hunt is expected to announce an increase in the threshold in which authorities can increase council tax by without a local referendum.

Currently, the threshold is 2.99% – but Mr Hunt is expected to hike this to 5% in today’s autumn statement.

Cllr Les told a meeting of the county council yesterday that while the measure would be welcomed, more support would be needed.

He said:

“It will give us flexibility, but I don’t think that it’s the only leaver that we need to pull.

“Government grants has got to be part of that answer as well.”

The move comes as county council leaders warned in June that the upcoming North Yorkshire Council could face a blackhole of £50 million in its finances.

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Cllr Gareth Dadd, executive member for finance at the county council, said the situation was largely due to deficits it will inherit from district councils and high inflation.

The new unitary authority will replace Harrogate Borough Council, the county council and the remaining six districts.

Although he did not estimate the total structural deficits that the seven second tier authorities, including Harrogate Borough Council, would have accumulated by the time the new council is launched in April, he said it was believed it would be “substantial”.

It has been estimated the combined ongoing deficits of the district and borough councils could be in the region of £10 million.

In addition, ahead of the recent increasing inflation rate the county authority had been prepared to cover a deficit of up to £20 million.

With inflationary pressures, which include the council’s gas and electricity bill rising by some £3m, it is believed the total deficit could nearly reach £50 million.

Cllr Dadd said at the time:

“That is a frightening figure, but nonetheless, I think we are right to raise that at this stage.”

The three Conservative MPs whose constituencies include the Harrogate district have declined to comment on today’s emergency statement.

Chancellor Jeremy Hunt reversed almost all of Prime Minister Liz Truss’s tax cuts, which were announced in the government’s mini-budget three weeks ago.

Andrew Jones, the Conservative MP for Harrogate and Knaresborough, welcomed last month’s growth plan, saying on his Community News website:

“There are a huge number of measures, many focused on our productivity and investment which are the platforms for future growth. So, plenty to be positive about here in Harrogate and Knaresborough.”

Today we asked Mr Jones, along with Julian Smith, who represents Skipton and Ripon, and Nigel Adams, who represents Selby and Ainsty, to comment on today’s announcement by Mr Hunt.

We also asked them whether the Prime Minister should resign, after three Conservative MPs called for her to do so.

Neither Mr Jones nor Mr Smith had replied by the time of publication.

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Mr Smith was critical of the tax cutting agenda in last month’s mini-budget. He said at the time:

“In a statement with many positive enterprise measures this huge tax cut for the very rich at a time of national crisis and real fear and anxiety amongst low income workers and citizens is wrong.”

Maire Crosse, Mr Adams’ senior parliamentary assistant, did reply but only to say:

“Nigel is away today and not contactable. Therefore, he will not be providing a comment.”

Harrogate business chief: government’s economic credentials ‘in tatters’

The chief executive of Harrogate District Chamber of Commerce has said the government’s economic credentials are in tatters after today’s emergency statement.

David Simister cautiously welcomed last month’s mini-budget for containing measures to stimulate growth.

He said at the time scrapping the rise in national insurance and reversing the increase in corporation tax was “good news for businesses large and small”.

But Mr Simister was less complimentary about today’s statement by Chancellor Jeremy Hunt, which reversed almost all tax cuts besides national insurance.

Mr Simister said:

“This is a massive U-turn, and the government’s economic credentials are in tatters.

“In the Kwarteng mini-budget there were some real positives for business, cutting corporation tax, reducing national insurance, and reforming off-payroll (IR35) rules. Only the NI reduction has stayed.

“If Mrs Truss goes, and I really can’t see her staying the course, I wonder if there will be a third mini budget in as many months?”

The chamber, which was founded in 1896, supports local businesses and lobbies on their behalf.

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