Mebyon Kernow – the Party for Cornwall has hit out at the Conservative Government’s “mini-budget,” which will massively benefit the rich and do little for the less-well-off.

Measures from the Chancellor of the Exchequer, Kwasi Kwarteng, include the abolition of the top 45p rate of income tax for high earners, the removal of the cap on bankers’ bonuses, the cancellation of a planned increase in corporation tax, and the removal of stamp duty on properties worth up to £250,000. It has also been estimated that the overall “tax cutting” package will require an increase in government borrowing of over £70billion.

The Institute of Fiscal Studies has confirmed that the richest 10% of households will gain the most from the changes in tax policy. The Government itself estimates that the abolition of the top rate of income tax will benefit 629,000 people (earning more than £150,000) about £10,000 a year, while the Resolution Foundation says that individuals earning £1million will get an annual £55,000 tax cut.

Speaking after a meeting of MK’s National Executive (Friday 23rd September), Party Development Officer Cllr Michael Bunney issued the following statement:

“This is a shameful Tory budget for the rich, based on their ideological obsessions with ‘trickle down economics,’ which we know does not work.

“Taking on billions of pounds of debt to benefit the corporations, the rich and super-rich – while millions of households are struggling to make ends meet – is ridiculous.

“This is irresponsible economics. No British chancellor has ever chosen to permanently increase borrowing by so much. The Conservatives are gambling with our economy and risking the security of the many, to benefit tax cuts for the few.This budget won’t help the majority of people in Cornwall and it will just benefit the Tories wealthy friends.

“The priorities of the UK Government are all wrong. To boost the incomes of bankers and the wealthy, while at the same time coming up with a requirement for part-time workers suffering in-work poverty to secure better-paid work or to have their benefits cut, is absolutely criminal.

“And instead of doing something to deal with the dysfunctional housing market that is causing so much harm to Cornwall and its communities, the cut in stamp duty will make the situation even worse.

“The Chancellor’s ‘fiscal event’ may benefit the bankers and help them to buy another ‘second home,’ but it will do nothing positive for the households that really need support.”