‘They think British workers are lazy’ - Birmingham MPs react to to Kwasi Kwarteng’s mini- budget

The Chancellor of the Exchequer Kwasi Kwarteng has announced tax cuts and outlined the government’s spending plans in a mini budget delivered to the House of Commons today (23 September).

Mr Kwarteng has confirmed that the cap on bankers’ bonuses will be lifted, the planned rise to corporation tax will be axed and household energy bills will be cut by an expected £1,400 this year.

Using more than £70 billion of increased borrowing, Mr Kwarteng also brought forward a planned cut to the basic rate of income tax to 19p in the pound a year early to April and reduced stamp duty for homebuyers. He argued tax cuts are “central to solving the riddle of growth” as he confirmed plans to axe the cap on bankers’ bonuses while adding restrictions to the welfare system.

He also confirmed that the Government will legislate to require trade unions to put pay offers to a member vote, stating it is “simply unacceptable” for strike action to disrupt lives. The new Prime Minister and Chancellor have argued that the measures announced today will all help boost to boost economic growth.

Kwarteng’s mini budget has done nothing to arrest the slide of the pound, which has fallen further compared with the dollar after his announcement. It has dropped below $1.11 against the dollar for the first time since 1985. Analysts are saying investors are concerned about unfunded tax cuts.

How have Birmingham MPs reacted to the news?

Speaking in the House of Commons about the cap on bankers’ bonuses being scrapped, Birmingham Yardley MP Jess Phillips, said: “Can the Chancellor just confirm to me he has just announced a tax cut that means someone earning £1m will be £40k better off - more than a nurse earns, and over £10,000 more than the average wage in Birmingham?

Mr Kwarteng responded, saying: “The top grade of tax, has gone back to what it was before she entered the House.”

Posting on Twitter, Labour’s Birmingham Selly Oak MP Steve McCabe, wrote: “Listening to those Tories expressing most enthusiastic support for Chancellor’s plans and those expressing doubt and caution, it’s becoming crystal clear that government is now in the hands of a cavalier radical right hellbent on a dangerous economic experiment.”

The Chancellor also confirmed plans to make around 120,000 more people on Universal Credit take active steps to seek more and better-paid work or face having their benefits reduced.

Labour’s Hall Green MP Tahir Ali wrote on Twitter about the news: “Truss and Kwarteng are planning to cut Universal Credit payments for workers on part-time arrangements. They think British workers are lazy. Meanwhile, they plan remove the cap on banker’s bonuses. Once more, the Tories have sided with the profits of big business against working families.”

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