Mini Budget 2022: York and North Yorkshire respond to statement

The Labour MP’s comments came barely minutes after Chancellor Kwasi Kwarteng announcing a £45bn range of tax cuts to drive economic growth and living standards.

The Chancellor confirmed in his statement today new investment zones to boost business spending and announced that households will benefit from the reversal of the National Insurance rise from November.

The basic rate of income tax will be cut from 20pc to 19pc from April 2023, while first-time buyers will benefit most from the stamp duty cut, with the threshold rising to £450,000.Rachael Maskell MP (Image: Newsquest)

He said: "We are determined to break that cycle. We need a new approach for a new era focused on growth.

"Our aim, over the medium term, is to reach a trend rate of growth of 2.5pc and our plan is to expand the supply side of the economy through tax incentives and reform.  That is how we will deliver higher wages, greater opportunities, and fund public services, now and into the future."

However, Ms Maskell accused the government ofs cutting taxes for the super-rich and lifting the cap on bankers’ bonuses.

The MP argued this will deepen inequality and do little to help people and businesses through the cost-of-living scandal that this Government have created.

Labelled as a ‘Growth Plan’, this is the sixth ‘growth plan’ since the Tories have been in power, each one failing, she said.

Ms Maskell further commented: “The Chancellor is living in a parallel universe, when people are worried about their heating and how to feed their families, he is cutting taxes for the super-rich and lifting the cap on bankers’ bonuses.

“This Government has created a cost-of-living scandal and their approach to our economy will deepen inequality. It is the greatest economic incompetence yet seen, leaving us all to pay for this for generations to come.

“The winners from these announcements are the very rich, bankers and oil companies like Shell and BP. The tax cuts for those wealthy few at the top are paid for by the rest of us, not getting a pay rise now, having to cut back, going without and watching on as small businesses get squeezed.

“I wrote to the Chancellor ahead of today’s statement and highlighted my 5 point plan to help people get through these challenging winter months, and today’s Bankers’ Budget has given communities like York little to be hopeful about. While making a U-turn on National Insurance Contributions which Labour consistently voted against, families and businesses are going to have a tough few months ahead of them.

“Here in York we are putting plans in place to ensure people are kept warm and fed this winter. The Tories have never looked after those in need, and are failing people yet again. Labour, on the other hand, has set out a very different plan, where the oil and gas giants pay a windfall tax and people will be kept safe.”