Karin Smyth MP slams “economically illiterate” fiscal event delivered by the Government

Karin Smyth, MP for Bristol South, has slammed the Government for its “economically illiterate” mini-Budget following news that the majority of people in south Bristol will end up paying for a tax cut for bankers and the top 629,000 earners in the country.

Despite being called a “Fiscal event” by the UK Tory Government, today’s announcements were anything but. The announcements made by the Chancellor will see the greatest shift in taxation and borrowing policy since 1972 with the top rate of Income Tax for the wealthiest 629,000 people being scrapped, the cap of bankers’ bonuses being eradicated and oil/gas companies not having to pay a single penny more whilst the nations credit card is used to limit energy bills for the next six months.

Since the statement on the morning of Friday 23 September the international markets have spooked at the future prospects of the UK. The pound sterling to the dollar has hit a 37 year low, the 10-year borrowing rate for the UK Government has hit a 12 year high and independent forecasters are predicting recession is on its way.

Karin Smyth, MP for Bristol South, said:

“Today’s mini-Budget can be summed up in two words: economically illiterate. It contained within it no measures to make sure we balanced the books, no indication that fair taxation was the way forward, and definitely no sense of how we will invest in our public services.

“By letting oil and gas producing companies off the hook for the hikes in energy prices the Government has decided that we must all pay through borrowing. The financial markets have already shown how spooked they are by the future prospects of the Government’s plans with the pound hitting lows not seen in a generation. This will only serve to drive up the price of our weekly shop.

“The priorities of this government are seriously misplaced. Instead of ensuring taxation is fair and those with the broadest shoulders bearing the biggest burden, the Government has done a reverse Robin Hood: taking from those just about managing and giving to the most comfortable. A Labour Government would drive fair investment and a sound economy for everyone.”