For many people, politics can, at times, feel disconnected from their day to day lives. However, the decisions made by Government often have far reaching, and sometimes unintended, consequences. This is no more acutely felt than when it comes to fiscal decisions. Having spoken with local businesses throughout the constituency, I am acutely aware of the negative impact that recent decisions in Westminster have taken on them. That is why, in Parliament, I am holding the Government to account on their plan for growth.
At the time of writing this missive I, along with the rest of the country, am waiting in anticipation for the Spring Statement. By the time this goes to press, the Chancellor will have provided the House and the country with an update on the health of the economy, the Office for Budget Responsibility (OBR) forecasts, and the progress made since last October’s Budget. I fear it will not make for particularly pleasant listening.
The reason for reaching this conclusion is simple. The economic policies announced by the Government, since coming to power in July of last year, were supposed to deliver growth. As a patriot, despite not being a Labour man, I wished the Government well in this endeavour. Growth is, after all, in our national interest. Regrettably, with each fiscal decision, the Government has moved further and further away from achieving its stated aim. Rather than delivering economic growth, it is delivering economic decline.
Amongst the most significant changes, as set out in the Budget, were the decisions to increase the rate of employer’s National Insurance Contributions (NICs) by 1.2% and reduce the Secondary Threshold for NICs from £9,100 to £5,000 as of 6th April 2025. Due to the uncertainty created by increasing NICs, firms are freezing, recruitment, delaying wage increases, and reconsidering future investment plans as a direct result. It is deeply concerning that retailers, and particularly supermarkets, have indicated that costs could be relayed to the consumer.
Last week, the Bank of England held its interest rates at 4.5%. In my opinion, this decision was due to a lack of business confidence, particularly as inflation rises and growth slows. Policies such as increasing the taxes on business, through NICs, are central to a stagnating economy.
Furthermore, cutting the Retail, Hospitality and Leisure relief from 75% to 40% is another deeply misguided move by the Chancellor. In Solihull West & Shirley, the average pub will now face annual bills of over £21,000, significantly above the national average.
As if these burdens were not enough, the introduction of the Employment Rights Bill threatens to become the Achilles’ heel of British enterprise This will serve to stifle flexibility and growth at a time when our economy can least afford it.
In the months and years ahead, I will continue with my efforts to stand by our local businesses. I am pleased to announce the formation of my own business club; a forum to foster networking, share best practice, and provide tangible support to the men and women whose hard work drives our local economy. Business owners are warmly invited to contact me at [email protected] should they wish to take part.
