Budget falls short for Eastleigh says Liz Jarvis MP

In his first Budget, Chancellor John Healey announced 98 separate measures including a one-off £100 energy payment for households in council tax bands A to D, kept the 5p cut in fuel duty in place until July 2027 and raised the small business rates relief threshold for retail, hospitality and leisure firms from £12,000 to £18,000.

Responding to the Budget, Liz Jarvis said:

"Today's Budget, Labour's third since entering office, was another missed opportunity. There are some measures I welcome, yet households and businesses in Eastleigh are still waiting for the certainty and support they've been crying out for."

The energy payment will be funded by a temporary increase in the tax paid by banks, a move Ms Jarvis welcomed. However, she warned that a single payment would not go far, with energy bills expected to rise again next year.

"Asking the banks to contribute more is the right thing to do and Liberal Democrats have been calling for it for some time. A one-off £100 payment won't go far for families facing another winter of high bills, and drivers are still paying a lot at the pump even with the fuel duty cut."

The Liberal Democrats are proposing a £14 billion cost-of-living package, paid for in full and worth around £350 to the average household. It would include £100 a year off energy bills through an Essential Energy Guarantee, and a 10p cut in fuel duty.

On high streets, Ms Jarvis said the changes to business rates would help some smaller firms, but that hospitality businesses needed more support:

"Lifting more small businesses out of business rates will help and I'm pleased to see it. However, our pubs, cafés and restaurants are still having a tough time and a temporary 5p cut in VAT on hospitality would help them keep their doors open."

Ms Jarvis also raised concerns that the Budget offered little for young people. There was no change to employers' national insurance costs, which the Liberal Democrats say have made it harder for businesses to hire young people, and no measures on student loans.

"I want local employers to be able to give young people their first job and that means easing the cost of taking on staff. 

“On Plan 2 student loans, the Budget was silent. Frozen thresholds and 40-year repayments are leaving graduates to pick up the bill, and students deserve better than seeing this issue kicked down the road.

“I'll keep pressing the Government to do more for families, businesses and young people here in Eastleigh.”