Westmorland and Furness Conservatives have warned that the disastrous effects of the Autumn Budget and Spring Statement and maximum council tax increases will begin to be felt by residents from today, after Rachel Reeves, the Chancellor, broke Labour’s pre-election promises to introduce her Jobs Tax, pile up borrowing, destroying economic growth and increasing the likelihood that interest rates and inflation will start rising again.
Councillor Ben Cooper, Conservative member for Low Furness ward, says: “Rachel Reeves’s Budget and Emergency Spring Statement were grim for local people and the country as a whole – today, as the tax hikes, welfare cuts and red tape on business kick in, we will see the disastrous effect on household incomes and economic growth start to bite. It’s being described as Rachel Cruel’s Day – a damning verdict on Labour’s handling of the economy.
“Just months after her first Budget, the Chancellor has been forced to return to Parliament to in effect rip up her plan – it is an admission of failure, and a direct result of the economic chaos created by this Labour Government just nine months into its term in office.
“Your local Conservatives here in Westmorland are working cross-party to try to find ways to mitigate the impact on our most vulnerable residents, from pensioners who’ve had their Winter Fuel Payments withdrawn, farmers who face an uncertain future and those who will are likely to lose their jobs owing to the ENIC rises, to disabled children and people with long-term health issues who face having their welfare payments slashed.”
The independent Office for Budget Responsibility (OBR) has confirmed that, under Rachel Reeves, the economic outlook has sharply deteriorated, leaving working people in Westmorland & Furness facing significant economic uncertainty. It found that:
- Growth has been cut in half: Forecast GDP growth for 2025 has collapsed from two per cent to just one per cent, with the OBR citing structural weakness in the economy - much of it driven by poor productivity and falling business confidence.
- Inflation is expected to rise again: CPI inflation is now expected to rise to 3.2 per cent this year – more than double the forecast level when the Conservatives left office in 2024 and above the Bank of England's target.
- No growth in living standards: Real GDP per person remains below pre-pandemic levels, with households facing stagnant wages, rising prices and higher taxes for years to come.
Councillor Cooper adds: “Since this Chancellor’s first disastrous Budget, she has placed our country on a path of economic destruction by introducing a Jobs’ Tax, piling up borrowing and destroying growth. The consequences of her choices are now clear – ordinary people will be left to pay the price. Your local Conservative Councillors and campaigners will continue to do what is right and fight these measures every step of the way.”
Local Conservatives have joined with some of their Labour counterparts to condemn the Government’s economic choices, with Councillor Ben Shirley directing worried residents to the Council’s Household Support Fund, while Councillor Roy Worthington wants a special working group of the Furness Locality Board created to look at what more can be done, including increasing access to Discretionary Housing Payments.
Mel Stride MP, the Shadow Chancellor of the Exchequer, comments: “Labour inherited the fastest-growing economy in the G7 – and in just months, they’ve brought it to a standstill. Growth halved, inflation rising, taxes at record highs, and unemployment on the up.
“The British people are working harder, paying more, and getting less. This isn’t stability, it’s economic chaos created by Keir Starmer and Rachel Reeves. Under new leadership, the Conservatives will hold this failing Labour Government to account and stand up for families across the country who are being punished by the Chancellor’s decisions.”
