As I’m sure you have seen, the Chancellor announced her Spring Statement, outlining the state of the economy six months after her Budget.
When the Conservatives left office, we had the fastest growing economy in the G7, but the story now is completely different.
This is in stark contrast to the first year of a Labour Government who have just overseen growth being slashed at a mere 1%.
One point that the chancellor seems proud of is the fact that the average family is set to be £500. That isn’t £500 a year, that is £500 over the course of the parliament.
When Rishi Sunak slashed National Insurance, the average family saved over £400 a year. That is the difference between a Labour and the Conservative Government.
This shows just how low the bar is for the Labour Government when it comes to economic growth.
Sadly, Labour’s own assessment highlights the fact that their cuts to welfare will push 250,000 into poverty with Wales being disproportionately impacted.
While we all want to see people off benefits, the only responsible way of doing this is to ensure that there are adequate employment opportunities out there.
Sadly, under Labour, there aren’t.
The independent office that assesses the impact of the Government’s policies, has confirmed that unemployment will be higher this year, next year and the year after resulting in a peak of 4.5 per cent across the United Kingdom. That is the equivalent of 160,000 more people out of work than was predicted.
All of this is on the back of businesses struggling to hire employees as their wage bill rises due to the National Insurance rise kicking in next month.
Sadly, this grim news just means that we are likely in for more tax rises.
This is just more proof that empty rhetoric of growth will not get you anywhere when it comes to managing the economy.
The only way that we can have sustained economic growth is through sound business policy and investment. Not through higher taxes as Labour seem to think.
To make matters worse, the Chancellor’s policies have left the economy more vulnerable to shocks such as the Donald Trump’s Tariffs.
Be rest assured, I will continue to hold the Labour Government to account for their actions here in Wales and will continue to call on them to stand up to the UK Government in Westminster.
Peter Fox MS - Monmouth
