Sir Julian Smith, MP for Skipton and Ripon, says the October Budget fails farmers and gives pubs no VAT cut, but he welcomes the extension of Founders Relief.
Sir Julian Smith, the Conservative MP for Skipton and Ripon, says Chancellor John Healey’s October Budget “tragically misses the chance” to back farmers, hospitality and small employers, and that rural communities have been left with little.
In a statement issued on Thursday 29 October, the day after the Budget, he criticised its record on farming, VAT for pubs, hotels and restaurants, support for children with special educational needs, defence, jobs and tax. The one measure he praised was the extension of Founders Relief.
“This Budget tragically misses the chance to properly back the people who keep rural Britain going: our farmers, small businesses, hospitality sector and local employers,” he said. “For many farmers, hospitality businesses and families across rural Britain, this Budget is a missed opportunity.”
Farmers
Sir Julian acknowledged that the Chancellor announced a temporary suspension of fertiliser tariffs and extended relief on red diesel, but said that does not go far enough.
“Farmers will be particularly disappointed,” he said. “There is little in this Budget that addresses the deep financial pressures facing farming businesses or restores confidence in the sector. Rural communities need a government that backs food production, family farms and long-term investment in British agriculture, not one that continually asks farmers to shoulder more uncertainty.”
No VAT cut for pubs and hotels
The Budget offers no reduction in VAT for hospitality, he said, despite businesses across North Yorkshire arguing for targeted relief.
“Pubs, hotels, restaurants and visitor attractions remain under significant pressure from rising costs, and many businesses across North Yorkshire have argued for targeted VAT relief to help them remain competitive,” he said. “Despite recognising the importance of hospitality to local economies, the Budget offers no reduction in VAT for the sector. Instead, businesses are left facing many of the same challenges they raised last year.”
SEND support
On special educational needs and disabilities, he said there is “no major package to reform SEND provision, tackle assessment delays or improve support for children and families.”
“Families waiting for SEND assessments and support will struggle to find a meaningful answer in this Budget,” he said.
Defence, jobs and tax
He called the Budget’s defence commitments “vague and delayed yet again”, saying: “Given the increasingly dangerous international situation, the Government still refuses to fully strengthen Britain’s armed forces. All the evidence is that this needs to be done now and treated as a national priority.”
On measures to help people into work, he said they “fall well short”, adding: “Young people in particular need better access to apprenticeships and practical skills training. Local employers who want to take on young people need the financial room to do so. The real test is whether these policies help businesses grow and create lasting jobs, rather than simply moving people between government programmes.”
He also said the tax burden is heading towards the highest level on record, that “millions of workers are still being dragged into higher tax bands”, and that savers continue to see their returns eroded.
The one measure he welcomed
“One measure I do welcome is the extension of Founders Relief,” Sir Julian said. “Entrepreneurs and small business owners who take risks and create jobs deserve to be backed, and this is a sensible step. Unfortunately, it is one of the few genuinely pro-growth measures in a Budget that otherwise does too little for many businesses, farmers and rural communities.”
His full statement is on his website.
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