INTERVIEW: Morecambe MP says "we've tried to share tax rise burden fairly"

Thursday, 31 October 2024 16:03

By Greg Lambert @greglam72

The MP for Morecambe and Lunesdale says the government has "tried to make sure the burden falls fairly" after huge tax rises were announced in the Budget.

Lizzi Collinge spoke to Beyond Radio on Thursday about the new Labour government's first Budget, which included £40bn of tax rises, the biggest increase in a generation, with employers set to bear the brunt of the rise.

Rachel Reeves, Chancellor of the Exchequer, said the increase was needed to fund public services and plug a £22bn 'black hole' in the finances inherited from the Conservatives.

There was also the biggest increase in funding for the NHS since 2010, with £22bn for frontline day-to-day services and another £3bn for equipment and buildings.

The Budget also confirmed that core Levelling Up projects inherited from the previous government would be honoured, which includes £50m of funding for the Eden Project Morecambe.

LISTEN to Lizzi Collinge speaking about the Budget

On the Eden Project Morecambe

"The money is being honoured and we have a proper budget line against it now.

"The problem we had previously was we inherited spending promises that did not have actual budget lines against them.

"We have managed to make sure we have actual money allocated to the Eden Project, it's going ahead and I'm very very happy.

"We'll be getting spades in the ground soon. Morecambe is going to thrive.

"The funding is split into two parts, £50m from the government and £50m from private investors. The £50m from the government is locked in and the vast majority of the other £50m, 98 per cent of it, is already locked in. There is a very small amount left to find and I have no doubt that will come in, especially after this confirmation yesterday."

On tax rises and a 1.2 per cent rise in National Insurance contributions for employers from April

"We've tried to make sure the burden falls fairly. Some employers will be paying more National Insurance contribution. We're investing in the local services that will support businesses as well. We've cut draught beer duty so we're protecting pubs. We've made changes to business rates relief so we're protecting retail and hospitality."

On funding the NHS and plans for a new hospital in Lancaster

"Nothing has changed, the whole New Hospitals Programme is being reviewed to make sure it's affordable. All the hospitals having problems with concrete are going ahead. The rest of the hospitals, including the Lancaster one, are going through a review process. That's the responsible thing to do as a government. The Local New Hospitals Programme have worked so hard on it, and I'm very confident in the long-term that we can deliver this. We need to make sure the plans stack up and the plans we inherited, did not. The business case for a new hospital in Lancaster is very, very strong but the government has to do due diligence."

On the rise in the cap on single bus fares to £3 from £2

"The original plans were to stop the cap in December. We recognise the benefits of having a cap on bus fares, but again it's about affordability. I'm really passionate about bus services, especially about getting buses in rural areas. I'm really pleased we've been able to extend (the cap) even if it is at a different level."

On cuts to Winter Fuel payments for pensioners

"I totally understand the concern. I think the principle of means-testing it is correct because it was going to every single pensioner no matter how wealthy, and I don't think that's a good use of public money. There is concern about the threshold and this has formed part of the discussions nationally. When you look at the pension triple-lock that we have protected, that is delivering above-inflation pension rises, we have extended the Household Support Fund and the discretionary housing payment, so there is access to funds for people who are struggling with this. There is additional support out there."

Ms Collinge also spoke about how she's found her first few months as MP since she was elected in July, and revealed there are plans for her to open a new office in Morecambe, at a location to be announced.

Morecambe South County Councillor Charlie Edwards of the Conservatives, said it was an "awful budget, raising taxes for everyone, breaking election promises and punishing aspiration and small businesses, not to mention killing off family farms".

Read the full Budget HERE.