MP James Cartlidge on National Insurance and farming
I’ve set out my concerns about the economy in a number of my EADT columns since the election – but now those worries are coming to a head.
Within days, actual pain is going to be visited on our businesses and, therefore, ultimately on everyone else – in the form of higher bills for energy, going to the pub and throughout the economy.
In short, the cost of living is about to take another massive hit.
Specifically, the imminent commencement of a new financial year will also see the introduction of a multi-billion increase in Employers’ national insurance.
This isn’t just about the rate increasing – adding hugely to the cost of employment – but a sharp drop in the level at which this tax kicks in, turning a negative impact into a disproportionate and wholly damaging assault on the whole productive sector; but not forgetting that this also includes charities, hospices, GP surgeries and the public sector.
But this really is a double or even triple whammy, as this surge in tax levels combines with increases in energy bills.
Again, this impacts not only many of our small businesses, but also charities and care providers from the start of this month.
Under the last Government, we had an unprecedented rise in the cost of living caused by Putin’s invasion of Ukraine.
We worked incredibly hard, taking difficult decisions on public sector pay and elsewhere, to ensure that inflation was back on target at 2% by the time last year’s election took place.
So, it’s frustrating to see inflation rising again, but on the back of avoidable, home-grown causes.
When it comes to the productive sector in South Suffolk, at the heart of the matter for a rural constituency like ours is the position of our farmers – custodians of our countryside; the food factory of England.
And yet they are being treated with disdain by a Government that genuinely seems completely oblivious to rural concerns.
It’s not just the deeply damaging Family Farm Tax – but Labour’s plans to scrap specialised mental health support, and most recently, halting the Sustainable Farming Incentive (SFI) grant funding applications with no notice.
These measures could have disastrous consequences for our farmers who work so hard to preserve the countryside around us.
As a result, I held an emergency meeting in Hadleigh Town Hall last week, attended by the RPA and NFU, to give those affected a chance to air their concerns.
The overwhelming consensus was that this will has shredded confidence amongst the farming community – they need to be strongly involved in drawing up the replacement SFI scheme, and it needs to come into place as soon as possible.
I’ve also been out and about supporting important local businesses who often sit at the heart of our communities - pubs - such as The Swan in Monks Eleigh and The Crown in Stoke by Nayland, to celebrate English Tourism Week.
From this month they will be saddled with extra costs through increases to NICS and increases in the cost of energy, so we should be doing all we can to support them, which we’re focussed on through the Policy Renewal Programme, launched two weeks ago by Kemi Badenoch.
Our party’s policy launch focused on the key issue of how we can achieve net zero without unsustainable costs on our energy bills and way of life.
As a strong supporter of renewable energy, we must also harness our unique position in East Anglia to drive energy security through offshore wind - but this must be done without undue pressure on our beautiful countryside through electricity transmission infrastructure such as swathes of pylons to transport that energy.
A rural community facing the threat of massive new pylons would not think such an energy source was green, and certainly not if they thought the developer had made no serious attempt to explore alternative options.
Finally, for all the debate on net zero, we should remember that it is this country which was the first G7 nation to halve its emissions.
It is possible to do the right thing morally through being kind to our environment, whilst also supporting a strong economy.
Likewise, it is possible to do the right thing of helping people off benefits and into work, without assuming that this implies some kind of ‘attack’ on vulnerable people.
Indeed, that’s why I hold an annual jobs fair – giving local employers the chance to find new recruits; those on benefits the chance to move into employment, or those thinking of changing career, the chance to look for new opportunities.
My next Fair is taking place in Sudbury Arts Centre this Friday, April 4 10:00 – 13:00, with over 40 stalls from a wide range of employers and education providers.
It’s time to get behind our local economy, and I’ll continue doing all I can to champion our fantastic Suffolk businesses.
James Cartlidge is Conservative MP for South Suffolk
Published by the East Anglian Daily Times.
