MP Esther McVey – whose constituency includes Lymm – says the recent budget will be “catastrophic” for the economic health of the country.
Speaking in a budget debate on fixing the NHS and reforming public services, Ms McVey said: “It is only with a thriving private sector that the country can have the public services it wants and needs.
“Make no mistake this budget will be catastrophic for the economic health of the country. The truth is, however, that this ‘smash and grab of a budget’ on UK’s businesses will mean the money won’t be there to pay for the excellent public services the country requires.”
The Tatton MP has repeatedly warned that hiking National Insurance contributions for businesses would be devastating, leading to tough choices over wages, staffing levels and passing rises on to consumers.
She pointed to reports from both the independent Office for Budget Responsibility and the Institute for Fiscal Studies which have said 80 per cent of the employer National Insurance rises would be paid for by the workers, through lower wages and reduced employment levels.
The budget would create ‘eye-watering debt’ for future generations.
She added: “Debt interest payments will be more than £100 billion each and every year, and will reach an astonishing £120bn a year by the end of the decade (to put that into context it dwarfs the UK’s annual defence spend which stands at £55bn). This is money being wasted instead of being spent on public services.”
