Leader of South Tyneside Council ‘welcomes’ the Labour government’s first Budget

Councillor Tracey Dixon, the Leader of South Tyneside Council, has “welcomed” Labour’s first Budget since March 2010.

Rachel Reeves, the Chancellor of the Exchequer, delivered the Budget in the House of Commons on Wednesday, October 30.

Labour has stated that the Budget is designed to address a significant “black hole” in public finances left by the previous Conservative government.

Key measures of the Budget include a £25 billion increase in employers’ National Insurance contributions, as well as hikes in capital gains tax and tobacco duty.

Following the Budget announcement, the Leader of South Tyneside Council has given an insight into what it means for people living here in the borough.

Cllr Dixon said: “What I really welcome in the Chancellor’s budget is action to protect and support those in our communities who need it most, and a choice of investment over decline.

“In South Tyneside we are focused on targeting our support to make things fairer to make every penny count and to reduce inequalities.

“The continuation of the Household Support Fund is key given the impact it is making in the borough.

“It has helped fund food vouchers for children on free school meals during school holidays; school uniforms vouchers; food banks; the community food bus; our welfare support team; dedicated support for care leavers; and voluntary sector support to fund vital projects targeted at particular groups.

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“The Chancellor’s announcement to expand Breakfast Clubs complements our ambition to cut the cost of the school day as highlighted in our child poverty summit earlier this month.

“I also welcome the continuation of the UK Shared Prosperity Fund, albeit at a reduced level for a transition year in advance of wider funding reforms, and the continuation of Family Hubs funding that is supporting thousands of families in South Tyneside.

“The announcements around social housing will support our ambitions to further expand our council house investment, with the ability to fund projects already in the pipeline.

“We're also delighted that Government has listened to the case we’ve made for our major growth projects in our three towns, like the college relocation in South Shields, and has recognised how transformational these investments will be.

“It is positive that low earners will see a real boost in wages and, combined with more employment rights and a focus on health and childcare barriers to work, could help reduce economic inactivity in the borough.

“Major challenges remain on local government funding, the long-standing need for fundamental reform of adult and children’s social care, the SEND system and business rates, issues which will continue to put pressure upon local authority budgets. 

“We now wait for the Comprehensive Spending Review in the Spring and I was heartened to see Jim McMahon’s comments suggesting that the government would focus on aligning funding with deprivation levels.”