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  • Writer's pictureEdgbaston Labour

Preet Kaur Gill MP says Chancellor's Budget will do next to nothing for people in Edgbaston

Preet Kaur Gill, MP for Edgbaston in Birmingham has said that Rishi Sunak and his Budget will do next to nothing for people in her constituency.

In the Budget today, the Chancellor of the Exchequer announced a rise to the National Living Wage from £8.91 an hour to £9.50. This leaves more than a third of key workers in the West Midlands, earning less than £10 an hour.

Preet Kaur Gill MP said, “Rishi’s Budget shows just how much the Conservatives are out of touch, have the wrong priorities and will achieve next to nothing for working families in my constituency. Increasing the Living Wage by less than 60p will not offset the damage they have already done once the cut to Universal Credit, the increase to National Insurance Contribution rates and increasing energy prices are taken into account.

“This Budget comes at exactly the wrong time, just as people are feeling the pinch - with energy prices rising, the cost of petrol at record levels, and food bills soaring. The Conservatives have created this crisis where thousands of people are struggling with the basic cost of living and for many, it will be an extremely tough Winter.”

In Edgbaston, 11,440 households have already been impacted by the cut to Universal Credit which will see them lose more than £1,000 a year. More than a third of claimants in Edgbaston are in work, and it affects more than 7,189 children who live in a household claiming Universal Credit.

Labour’s plan would ease the pressure on households and businesses right now. It would abolish VAT on domestic energy bills for six months to help people get through the winter months. A Labour Government would boost pay with a £10 minimum wage right now, putting pounds in the pockets in a third of key workers. It would cancel the cut to Universal Credit and cut Business Rates next year.

Labour’s plan would be paid for through higher than expected VAT receipts in the first half of the year, and a temporary increase in tax on digital services firms like Google and Facebook.

Preet continued, “Under the Conservative Government, from next year our taxes will be the highest they’ve been in decades. But, even with these higher taxes, they still have no plan to fix our crumbling public services, putting more police on streets, to tackle the growing classroom sizes in our schools, or the ever-growing waiting times to get hospital treatment.

“Instead of sitting back, Labour has set out how we would get a grip on the crisis and improve people’s everyday lives. We’ve shown how a Labour Government would create a higher wage, higher productivity economy. Our plan to buy, make and sell more in Britain is the cornerstone for making this happen. Our Industrial Strategy and would boost pay and conditions, fair pay agreements and end exploitative practices that are lowering standards.

“Simply put, after more than 11 years of Tory austerity and cuts that have weakened the foundations of our economy, we need a Labour Government with a plan for the long-term challenges we face in Birmingham and around the UK.”


Background Information

According to Resolution Foundation analysis, following the increase to the Minimum Wage, take home pay would be reduced to only an extra £265 once the taper in UC, income tax payments and the higher rate of National Insurance contributions are taken into account.

However, this is the equivalent of someone working full-time hours (35 hours per week). For a single parent or someone with care responsibilities, working 20 hours a week, they would still be down almost £1,000.

The Government’s plan means those with children or with care responsibilities are going to be put in a more financially insecure situation than people who are able to work full-time.


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