People in Hull have their say on Rachel Reeves’ highly-anticipated Autumn Statement
Businesses and local leaders have reacted to the Chancellor’s Autumn Budget. Rachel Reeves has delivered her second Budget since becoming Chancellor of the Exchequer after the 2024 General Election.
Ms Reeves told the House of Commons the Government is “rebuilding the economy” whilst making decisions to create a “fairer, stronger, and more secure Britain.” Key announcements included the abolition of the two-child benefit cap, a move which was music to the ears of many back bench Labour MPs who had been calling for the Government to scrap the Conservative Party policy, which Ms Reeves told MPs “has pushed hundred of thousands of children into poverty.”
Ms Reeves announced a new tax on high-value homes. It means owners of properties valued over £2 million will pay an extra £2,500 a year, while those valued over £5 million will pay £7,500. The Chancellor also announced that from April the minimum wage for 18 to 20 year olds will be raised from £10 to £10.85 an hour, whilst for over-21s the Living Wage will rise to £12.71 from £12.21.
Whilst not announcing any rises in income tax, as promised in the Labour Party’s manifesto, the Chancellor did announce that tax thresholds are to stay ‘frozen’ for an extra three years, until 2031. This means that despite inflation leading to many salaries rising, the point at which you will enter a new tax bracket and start paying a higher rate of tax, will not change, so more people will be pushed into higher brackets.
Soon after the Chancellor’s speech ended we went into Hull city centre see how Ms Reeves’ announcements had landed. Tom Sowerby, owner of Brew, a coffee shop and bar on the corner of Bond Street and Albion Street, said increasing the minimum wage “is great for people, but less good for small businesses.”
He added: “Hopefully it will mean people will have more money but it means we need to make more money.” Tom also explained how VAT is an issue for businesses like his own. “VAT absolutely spanks hospitality businesses,” he said.
The issue of VAT was also raised by James Reading, manager at The New Clarence, who said he was hoping Ms Reeves would lower VAT for pubs. “Bill are going up but nothing is being reduced in a struggling industry,” he said.
The leader of Hull City Council has also reacted to Ms Reeves’ Budget. The Liberal Democrats‘ Cllr Mike Ross said: “This budget was a shambles from the start to the finish. Whether it was the talk about income tax rises to the leaks before the Chancellor even stood to announce her plans, the whole budget was a disaster.
“The people who will bear the brunt of it all are the hardworking tax payers across Hull and the country. They deserve much better than we have seen today.”
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