Stability, certainty, and care: Responding to the Chancellor Hunt’s new plan
Date published:
Blog post from policy and representation director, Rhiannon Bearne.
On the day of the mini-budget I wrote:
“If the Chancellor’s Plan is going to achieve the radical restructuring he and the Government hope for, we will need more regional economic interventions, not less… This is illustrative of the biggest circle [the] budget is trying to square. Many of the interventions and their anticipated outcomes are highly contingent.”
It is that contingency that we’ve seen play out over the weeks since, and consequently caused yesterday’s new statement by a new Chancellor.
The Chamber, on behalf of its members has been calling for certainty and stability following the markets’ dramatic reaction the original plans. If early indications are that yesterday’s statement by the new Chancellor Jeremy Hunt is starting to achieve that, that’s a good thing.
However, questions remain unanswered.
The hole is the public finances is reportedly growing, heading towards £70bn, making the Chancellor’s attempt to balance the books on 31October even harder. His retention of the National Insurance cut is welcome as we know its one of the measures our members’ have told us can help businesses in all sectors. It’s also one of the few interventions to make a bigger difference to small business. In the same vein, more targeted support on energy costs for vulnerable households is the right thing to do. However, people have gone from having two years of certainty to six months over night. That doesn’t instil confidence and it doesn’t create stability. So, clarity soon, for both domestic and commercial consumers is key.
Finally, where does this leave the public finances? That question remains unanswered. It matters for a region where nearly one in five people work in the public sector and many more work for it. It matters for a region where poor health is one of the main drivers of poor productivity. It matters for a region where child poverty has hit a 20 year high and where nearly two in five children are growing up poor.
The Chancellor opened and closed his statement with references to compassion and protecting the most vulnerable. Economic instability and uncertainty, when combined with an already volatile mix of high inflation, energy prices and rising staff costs, offers the opposite. It’s right that the Chancellor should prioritise the most vulnerable, be they people, businesses or places. It’s critical that he proves that he and the Government have the commitment to do just that.
Photo by JOE Planas on Unsplash