Politicians across Teesside have given their immediate reactions to yesterday’s budget and it is very mixed.
Rachel Reeves delivered her first budget as Chancellor of the Exchequer yesterday (Wednesday 30 October). During her 75 minute statement to the House of Commons, she mentioned Teesside once, referring to the already announced carbon capture programme that is due to bring thousands of jobs to the area.
The chancellor also said during her speech that “today, I am providing funding for 11 new green hyrdogen projects… they will be amongst the first commercial scale projects anywhere in the world”. One of the projects set to benefit from the funding is EDF Renewables’ Teesworks-based Tees Green Hydrogen project.
Many policies were set out on tax as well as investment. Local MPs, mayors and councillors have shared their reaction with the Local Democracy Reporting Service about how they saw the budget.
Labour MP for Middlesbrough South and East Cleveland, Luke Myer was in the chamber to listen to the chancellor. He commented that the budget was about “real change” and that the Labour government is “investing in Teesside’s future” as well as highlighting “a plan to make our NHS stronger and more accessible”.
He added, “Families, young people, and workers across our area deserve a fair shot and that’s exactly what this Budget is about.” He said that the budget was about “more than just today… We are creating the foundations to a future where everyone has the opportunity to thrive.”
He also welcomed the green hydrogen project: “Supporting projects like Tees Green Hydrogen will drive economic growth while helping us meet our climate goals. This is exactly the kind of long-term thinking we need to see.”
Liberal Democrat Leader at Middlesbrough Council, Councillor Tom Livingstone was deeply unsatisfied by the budget, saying that “People in Middlesbrough and across Teesside will feel disappointed and betrayed today, as we enter a new age of Labour austerity.”
The Acklam councillor said that the chancellor’s “political choices” would “hit people in Middlesbrough hard”. He outlined his concerns, including the “cuts to disability benefits”, the increase in the bus fare cap from £2 to £3 as well as the cuts to winter fuel allowances and “no promise to limit Council Tax rises for hard-pressed local people.”
Labour Middlesbrough Mayor Chris Cooke, who leads the Labour majority on Middlesbrough Council, had a different sentiment. He said that he was “really impressed that this Labour government have decided to firmly back our public services, including on key issues that affect us all such as social care and homelessness”.
Mayor Cooke said he thought the government should be “commended” for the work being done to support small businesses and he confirmed that “I will continue working with the government to reset our council and deliver more for our residents”.
Conservative Tees Valley Mayor Ben Houchen posted across his social media channels a blank image, accompanied by the caption “Looking through the budget, here’s what there is for the people of Teesside, Darlington and Hartlepool (except for massive tax rises that will cost every household £1400)”. Conservative MP for Stockton West, Matt Vickers, echoed this message, reposting a 1 July social media message from Rishi Sunak which simply read: “Keir Starmer will put up your taxes. Bookmark this tweet.”
Andy McDonald, Labour MP for Middlesbrough and Thornaby East said that the budget was “good news” for residents in his constituency. He said what stood out for him was the “big rise in the minimum wage and a huge investment for hospitals and schools which will cut waiting lists and provide for more children’s breakfasts”.
He went on to say that “the changes to carers allowance, reducing universal credit deductions, and confirmation of funding for the Infected Blood and Post Office Horizon scandals compensation are most welcome and delivers more money to people who really need it.”
Group leader of the Middlesbrough Independent Councillors Association (MICA), Councillor Mick Saunders said that the budget was “nothing surprising”. He said “the increase in employers NI could stop businesses expanding” and therefore such businesses would not employ more people.
The MICA group also released a statement, arguing “It’s a travesty and a golden opportunity missed by the Labour government who have failed to help poorer authorities such as Middlesbrough by not changing the Barnett Formula.” The group said that such a change would have provided a “fairer allocation of funding to the people of Middlesbrough”.
The group added “We should not have to challenge neighbouring authorities in a gladiatorial style ‘scrap’ for funding”.
Anna Turley, the Labour MP for Redcar, said that the budget would enable the “rebuilding” of Britain, “while ensuring working people don’t face higher taxes in their payslips”. She added that “The people of Redcar and Cleveland can breathe a sigh of relief. Now they have a Labour government that is on their side”.
Within Middlesbrough Council, Conservative leader Councillor David Coupe remarked that “The OBR assume that 76% of the rise in employer NICs will be passed onto workers through lower real wages. This sounds very much like a tax on working people and totally against Labour’s manifesto pledge.”
The Stainton and Thornton councillor added that the OBR are “also predicting growth forecasts downgraded and inflation forecast up. The OBR documents also don’t support the 22 billion black hole claim either.”
Chris McDonald, Labour MP for Stockton North said that “we’re finally bringing real investment to Billingham”, celebrating £20m levelling up funding for the town, which he claimed under the previous government “was nothing more than a promise without a penny behind it”.
