York’s Liberal Democrats have labelled the Chancellor’s pre-election budget as a “desperate deception”, with income tax bills still set to rise for local people.

The opposition party on City of York Council added their opposition to that of the city’s ruling Labour Party and York Central Labour MP Rachael Maskell to the measures Jeremy Hunt announced yesterday.

The main measures included a 2% cut in the national insurance rate from 10% to April, impacting up to 27 million and saving up to £450 a year.

Self employed National Insurance rates will drop 2 points as well.

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The higher rates of Capital Gains Tax will be reduced from 28% to 24%.

The non-dom tax status for foreign nationals who live in the UK, but are officially domiciled overseas, will no longer be able to avoid paying UK tax on their overseas income or capital gain.

A ‘simpler’ system based on residence is promised in 2025.

The furnished holiday lettings regime has been abolished following local campaigns, because it created "a distortion meaning that there are not enough properties available for long-term rental by local people"

Duty rates for alcohol and fuel were frozen again.

The NHS received an extra £2.5bn this year to tackle waiting lists and other issues. The chancellor also announced a plan to boost the use of digital technology to improve its productivity.

However, York’s Liberal Democrats have said that local residents will see through this “deception” by the Chancellor and that people don’t want more “empty promises” from this Conservative government whilst “local health services are left on their knees”.

Councillor Andrew Hollyer said: “This Budget will barely touch the sides for families and pensioners in York, who are facing soaring mortgage bills and rents while the cost of the weekly shop goes through the roof.

“People in York know that their tax bills will remain sky high after this budget, and the Chancellor is attempting a desperate deception after years of  ‘backdoor’ income tax hikes by freezing the earnings threshold above which income tax is payable.

“Nationally Labour seem content with going along with the Chancellor’s tax and spending plans, leaving our public services without the vital investment they need.

“People don’t want more Conservative empty promises while our local health services are left on their knees. They want proper change through a General Election so we can kick this Conservative government out of office."

Councillor Nigel Ayre, Liberal Democrat Group Leader said: “There is a lack of ambition in the Conservatives‘ budget, a budget that only tinkers around the edges of the major issues our country and York faces. It is clear that they have run out of ideas.

“We have seen only a 6 month extension to the Household Support Fund - if Yorks’ Labour Council administration had accepted our budget amendment then we would have secured enough money to fund the whole year.

“We are disappointed that the Chancellor did not take this opportunity to fix local government funding. York still remains the most poorly funded council area in England.

“York’s public services are being underfunded nationally, whilst the Labour administration in York stands by and fails to protect residents from the very worst of the cuts.”