Sheffield politicians hit back at Tory mini budget, despite tax cut U-turn – “the damage to the economy has already been done”

New Prime Minister Liz Truss and Chancellor Kwasi Kwarteng yesterday (Monday, October 3) dropped their proposed cut to the top rate of income tax following threats of a rebellion by Tory MPs.

But local politicians pointed out that the fall-out of the mini budget and its effect on the value of the pound means people are still facing higher mortgages and prices as a result.

Questions are also being raised about how another £43bn of tax cuts will be funded. The proposed cut of the 45p tax rate for people earning more than £150,000 only accounts for £2bn of the £45bn tax cuts that were announced by Mr Kwarteng.

Sheffield Central MP Paul Blomfield said: “The damage of this tax cut for their wealthy supporters won’t go away as quickly as the Tories’ spectacular climbdown.

“Families will pay higher mortgages and prices as a result of the impact on the UK economy. And other measures from their mini-budget are still there, from lifting the lid on top bankers’ bonuses to cutting tax for big companies while small businesses struggle.

“These policies show whose side the Tories are on, as they oppose pay increases in the face of rising prices and prepare to make further cuts to the NHS and public services. This latest Tory team has no mandate; they should call a general election and let the British people have their say.”

Brightside and Hillsborough MP Gill Furniss said: “This U-turn comes too late for people who will pay higher mortgages and higher prices for years to come, the damage to the economy has already been done.

‘Playing games with the economy’

“The Tories are making it up as they go along, they have no plan, and they are playing games with the economy.

“Only the Labour Party, the party of fiscal responsibility and social justice, can repair the damage this Tory government has done.”

Cllr Douglas Johnson, leader of the Sheffield Green Party group on the city council, said: “It’s a massive climbdown and shows that their instincts are to make their rich friends richer while millions of people on lower incomes remain much worse off.

“There is still no answer on how the funding of adult social care will be supported or how millions of households will cope with higher food, fuel and housing costs.”

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Liberal Democrat Parliamentary candidate for Sheffield Hallam, Laura Gordon, said: “This budget has been a complete mess from the start. It still doesn’t even add up.

“Liz Truss and Kwasi Kwarteng must scrap it before even more economic damage is caused.

“Despite today’s U-turn there are still billions of pounds worth of unfunded tax cuts for large banks in this budget. All whilst local people and businesses suffer with a cost of living crisis.

“Hard-pushed local residents can’t risk further cuts to public services.

“This botched budget had already hit local people hard by sending mortgage rates skyrocketing.

“I know many people here fear for our local businesses facing closure, all whilst the government funds tax cuts for the richest companies.”

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