High Peak MP Jon Pearce describes the budget as ‘hugely positive’

Chancellor John Healey’s budget on October 28 offered relief on energy bills and business rates, support for mayors and apprentices, £1.5bn for social or council housing and affordable homes, improved wages for young adults, parental leave payments for self-employed fathers, and support for homeless people and first-time buyers.

Despite criticism the Labour Government has only offered ‘small sweeteners’ while failing to fully address high borrowing and national debt, the cost of living, high inflation, welfare costs, and defence, Mr Pearce welcomed the ‘fresh hope’ and ‘breathing space’ for families and workers.

The High Peak MP told the BBC Local Democracy Reporting Service: “It was hugely positive. The first point is the strength of the economy in what is an unstable world.

“The resilience of the economy. We have seen growth up and we are the joint fastest growing economy with public and private investment up and people’s wages up.

“But equally, we all know there are wars in Ukraine and Iran that are having significant impacts – not wars we have asked for or been taking part in – with huge consequences particularly for energy bills.

“The foundation of the economy is good but we need to protect people and give them breathing space and there is a positive package here particularly for the High Peak.”

Mr Healey announced plans to scrap standing charges on gas bills, extend VAT temporary relief on electricity bills, and to introduce business rate reforms to support the High Street while mayors will be getting more funding and control to reinvest.

The Chancellor stated that 20 million households in A to D council tax bands in England will receive a £100 ‘household energy payment’ to help ease the strain of rising energy bills.

Around 83per cent of homes in High Peak are in council tax bands A to D and will therefore be eligible for the new £100 Household Energy Payment this winter, providing direct support towards rising energy bills.

Mr Pearce said: “36,000 homes in the High Peak will get the £100 payment towards energy costs, and that’s massive.”

He added scrapping standing charges on gas bills will also make a ‘massive difference’ to people on low incomes.

The High Peak MP also highlighted how the temporary VAT cut on electricity will be extended until June 30, 2027, reducing the annual energy price cap by around £50.

He pointed out that workers will benefit from a 3.9per cent increase in the National Living Wage, which will rise to £13.21 an hour from April, 2027, while tariffs will be suspended on more than 100 food and drink products, including everyday supermarket favourites such as baked beans and chocolate.

Mr Pearce welcomed the increase in the threshold at which High Street shops start paying business rates from £12,000 to £18,000, mean many businesses will pay no business rates.

The Government expects the change to take a further 70,000 retail, hospitality and leisure businesses across the country out of business rates altogether.

Budget plans also include taxing banks, gambling businesses and vape shops and to improve HMRC tax collection enforcement, and introducing a new tourism levy all aimed at supporting people, High Street shops and the economy.

Mr Pearce said: “When you look at who can afford to pay more and when you need to provide breathing space it probably is right to look at the major banks to do that.

“We are proud of the banking sector in the UK and we want to look after them but what we are asking of them will make a huge difference for the rest of us.”

Mr Pearce said the lack of parental leave support for self-employed parents has held back the economy which is why the Government recognises the need for this payment.

He said: “I have been campaigning for these parental leave payments. We have lacked respect as a country for years for the people who grease the wheels of our economy and keep us going. I think this is a really positive move.”

The High Peak MP added that the budget reflects that Mr Healey has been listening to people about the challenges they face.

Mr Healey argued regional mayoral authorities, such as the East Midlands Combined County Authority, which successfully invest Government funding should be entitled to keep proceeds to reinvest in their good work.

He announced EMCCA and regional mayoral authorities will keep 20per cent of business rates and a share of income tax to spend on local priorities and will benefit from £2.85 billion in local leader funding.

Mr Pearce agrees that the budget has chosen to support mayoral authorities including the EMCCA because he says the Prime Minister Andy Burnham wants growth in every postcode.

He added: “Devolution helps us do that where mayors and combined authorities are investing in local areas. The share in business rates that come in on the back of that is right.

“They will have the opportunity to reinvest in their local area, driving growth to get growth in every postcode.”

Mr Pearce was pleased to hear that £1.5bn of funding is to be allocated for social or council housing and affordable homes.

He said: “Andy Burnham has talked about the mistakes of the last four years and one of the biggest ones was the right to buy for council home tenants which got people on the housing ladder.

“But it did not help councils to build new homes and social housing became depleted and it drove up rents and these costs have gone up with a knock-on effect.”

Mr Pearce added: “I think the UK is in a strong place. We need to be in the driving seat when the wars end. If you look at similar countries to us we are well-placed.

“We have struggled with productivity but that is moving in the right direction and we have struggled with private investment but these things are up.”

However, Reform UK-led Derbyshire County Council’s Cabinet Member for Finance and Efficiency, Cllr John Lawson, said he could see nothing in the budget to reverse economic damage and he argued the plans will not tackle unemployment, inflation and the economy.

Derbyshire County Council’s Opposition Liberal Democrat Group Leader, Cllr Tom Snowdon, said the budget included a lot of ‘small tweaks’ but ‘no concrete steps’ to address major economic challenges, improve trade with Europe, and defence spending.

Mr Pearce said: “We are making the long-term choices Britain needs. Building more homes, backing British businesses and entrepreneurs, putting power in the hands of local communities, and investing in the technologies and national security that will shape our future.

“Families across High Peak are feeling the pressure of household bills, and it is important that people get practical support to help them manage those costs.”