A York MP has said that today’s budget will drag the UK further into recession.

Rachael Maskell said the Autumn Financial Statement was only happening because the ruling Conservatives “wiped £30bn off the balance books in their reckless budget” 7 weeks ago.

The Labour MP continued: “It should have been a reset but instead is regressing the economy into a recession. With inflation now at 11.1% and mortgage rates set to rise again, the economy is spiralling into a very bleak place.

“The cost of living is breaking household budgets and bankrupting businesses. Any decent Government would have protected people and services.

“Beneath the warm words and positive spin, today’s announcement will mean wages falling in real terms, 500,000 more people unemployed and, according to OBR forecasts, living standards falling by a record-breaking 7%.  All due to the political choices of this Tory Government.”

The York Central MP also said: “Meanwhile, housing costs are rising and cuts to many public services will also hit people hard.  The benefits and pensions rises that were announced today won’t reach people until the spring, leaving many facing an extremely punishing winter.

“Out of 38 advanced economies in the OECD, the OBR has found we have the slowest growth and we are the only G7 country that is poorer since the pandemic.  While other countries are recovering, our Government has set us on a path to a long, deep and politically manufactured recession.  Blaming global factors is a clever ploy, but people are not fooled and it won’t wash.” 

“We have seen nothing but economic incompetence and illiteracy coming out of Downing Street. With a very tough time ahead, we need a new Government that will invest in our economy and communities, and repair the safety nets which so many are already falling through.”

She added: ““The Chancellor could and should have reversed outstanding tax cuts, closed the Nom Dom loopholes, equalised wealth tax with income tax, and created a £30bn green investment boost, but he didn’t.”

“Places like York have so much growth potential, but we need bold action to make the most of our economic opportunities.  Instead, we’re facing a Tory economic crisis that is holding us back.  After 12½ years of economic decline, we need Labour back in office.”

Meanwhile, Thirsk and Malton MP Kevin Hollinrake, who backed Prime Minister Rishi Sunakm in the Tory leadership battles, commented on measures that reflected his recently-appointed role as a junior minister in the Department for Business, Energy and Industrial Strategy.

He said on Twitter: “Delighted by the freeze to the Business Rates multiplier, a Transitional Relief Scheme, a Supporting Small Businesses Scheme, and a 75 per cent retail, hospitality and leisure relief, worth up to £110,000 per business.

“Also very much welcome the £1m Annual Investment Allowance being made permanent.”

He added: An estimated 99 per cent of UK businesses will be supported to invest and will have confidence that they can do so without future changes (unless we get a change of govt).”