As an MP one of the refrains with which you quickly become familiar is that “Government should pay for this….”. Not all but many of the suggestions are well made. Some that are implemented will lead to long term savings. However its always vital to remember that every pound spent by “Government” is paid for by the taxpayer, either right now or paid back (with interest) by us, our children and our even grandchildren if borrowed (often from overseas).
In 2010, we inherited national finances best explained by the note left in the Treasury by the outgoing Labour Minister “sorry, there is no money”. This reflected a nightmare picture of the Government on behalf of taxpayers borrowing massively every year just to maintain essential services.
This dreadful picture was restored through really painful measures which had to be taken between 2010 and 2019. Just when the pressures could be eased our new financial headroom had to be devoted to essential additional spending during Covid, preventing mass unemployment and ensuring our economy bounced back – indeed bounced back faster than our European neighbours.
Likewise, when Putin brutally invaded Ukraine and sent energy prices flying the Government once again rightly stepped in to support households. Our total commitment to easing the cost of living topped £100bn: even with this support (worth around £3,700 per household) the cost pressures have been intense even though they were hugely mitigated by Government action.
Notwithstanding this essential support, by intense focus, we have kept our national finances in order.
That is why we have been able to bring forward the biggest package of tax cuts to be implemented since the 1980s. The cut to National Insurance alone will mean on average a saving of around £525 a year for workers in the Horsham constituency. The allowances made to support company investment will help deliver better jobs, higher productivity and therefore greater tax receipts to pay for our services, for decades to come.
I know that many will be keen to see us go much further in the months ahead. I share this ambition and believe the hard graft of strengthening our national finances makes it more achievable: ensuring taxpayers are able to keep and spend more of their own money as we continue to grow the economy.