Conflicting opinions across Norfolk on budget as national insurance and tax threshold freeze remains
A continued freeze on the threshold of national insurance is “slightly better in the short term” for employees according to a trade union secretary.
In Labour’s first budget announcement since 2010, Chancellor Rachel Reeves confirmed that thresholds determining when you start paying tax will not change until 2028.
This decision was determined by the Conservative government last year and previous to the budget announcement, there had been speculation that the new Labour government would extend the freeze until 2030.
Secretary of the Lynn and District Trades Union Council Jo Rust told the Lynn News that she believes this decision “looks slightly better in the short term for employed people”.
Ahead of the budget announcement, Ms Rust said: “I hope that it comes about that the party that was founded for the working class person, and we need to differentiate between then and now, actually does deliver for the many and not the few.”
The freeze could mean that more workers will fall into the threshold of paying tax and national insurance as their wages increase - and be paying more tax.
Leader of Conservative-run Norfolk County Council Kay Mason Billig said she is “concerned” about the future of residents’ jobs in the county.
Cllr Mason Billig said: “What’s striking about this budget are the huge increases in borrowing and taxes and I’m concerned about the impact this could have on Norfolk’s economy, jobs and future prosperity.
“This Government says it wants growth but it ditched our original £600 million devolution deal. I haven’t heard anything about a new devolution deal, the Norwich western link, the West Winch access road and other key infrastructure schemes that support our economy.
“There remain a lot of unanswered questions, regarding the impact on the county council and its services. I wait to hear about Norfolk’s share of the additional funding for local government and for special educational needs. While every little helps, we need longer term certainty in order to plan for services.”
However, newly elected Labour South West Norfolk MP Terry Jermy said he was “delighted” by the budget announcement.
Speaking to the Lynn News, Mr Jermy said: “I am delighted with the Budget announcements that seek to address so many of the challenges that are impacting residents in my constituency.”