It was always going to be a tough Budget but investment in growth is welcome
The Chancellor of the Exchequer has revealed her first Budget, the first ever by a female Chancellor.
Among the measures announced were a raft of tax rises, including to Employers’ National Insurance Contributions; and ask of government departments to find 2% efficiency savings; a commitment to come to a Final Investment Decision on Sizewell C in the Spring; a 2.9% increase in defence spending and support for the creative industries; and a change to the government’s fiscal rules to allow more capital investment.
Mike Clancy, General Secretary of Prospect, said:
“This was always going to be a tough budget and spending round, but it is positive to see the government taking action on growth.
“The changes to the fiscal rules, which Prospect called for, are necessary and will allow capital investment in vital areas of the economy.
“Sizewell C nuclear power station will protect and create thousands of skilled jobs. The Final Investment Decision (FID) has already been delayed, and it is critical that the timeline outlined today for FID in spring is now delivered. Ministers must continue during this time to give the project clear and visible support to reassure the workforce and investors.
“Investment in the Ministry of Defence is also vital given the blackhole in its budget, but it will be apparent to all involved that this will also be needed in future years given the escalating threats to the UK.
“This Budget set out plans for departmental spending and efficiencies, these will be challenging to achieve. The government must work with civil service trade unions like Prospect to deliver these in the most effective way, protecting vital public services.
“The government also highlighted creative industries as an integral part of our industrial strategy and rightly regards the investment they are making in this area as critical to economic success. This is demonstrated by the announcement of film tax reliefs, investment in North East England and a commitment to continued funding for the BBC World Service.”