Essex experts react to Rishi Sunak's Budget bombshells

From the off the Chancellor made clear that his money masterplan consisted of three main building blocks: strong public services, infrastructure innovation and skills.

But where exactly is the Chancellor planning on dishing out the dosh and how will it impact on those living and working in Essex? 

One of the revelatons made during his speech in the House of Commons was that business rates are being cut by £7billion.

Rishi Sunak promised frequent revaluations every three years from 2023, relief for those adopting solar panels and a 12 month rate holiday on property improvements.

Denise Rossiter, chief executive of Essex Chambers of Commerce, however, is not so sure the Budget will result in the type of reform the sectors truly needs.

“As with every budget there are things we welcome but also much that we would like more detail on,” she said.

“The changes to taxation with reductions for air passenger duty and the proposed reforms to the tonnage tax for merchant shipping are welcome.

“But we are disappointed he appears to have moved away from reforming business rates which our members tell us are still one of the biggest barriers to they face.

“The changes to revaluation periods are, of course, welcome, as are the proposed investment reliefs to encourage the adoption of green technologies along with the proposed business rates relief for property improvements.

“As will every Budget the devil is the in the detail and we will be interested to see what emerges from Government departments in the coming weeks.”

Denise Rossiter (right)

The healthcare sector is set to benefit from £44billion to help tackle issues including the patient backlog.

Mr Sunak said during his speech by the end of this Parliament, the overall healthcare spending would have increased to £177billion and extra revenue from the Health and Social Care Levy would go directly to the NHS.

Cheryl Godber is the Eastern regional organiser for Unison, which represents frontline workers at the East Suffolk and North Essex NHS Foundation Trust including at Colchester, Harwich and Clacton hospitals. 

Despite Mr Sunak’s pledge to increase funding, she says NHS workers will not be so quick to forgive Downing Street for initially offering only a minimal pay rise. 

She said: “While the thawing of the pay freeze is welcome, most health workers are still angry ministers saw fit to hold down the wages during the hardest years of their working life.

"Essex NHS staff were doing everything they could to keep stretched services together but the Government turned its back on them.”

“That cold shoulder from the top makes it harder for hospitals here to hang on to the staff they need. But the most important thing is Rishi Sunak actually backs up his promises with hard cash.

"Unless Government departments get the money to fund these pay rises, the freeze will continue in all but name.”

Principal - Alison Andreas

Education and training is set to get £3.8billion to give people the “skills they need to earn more and get on in life”.

The financial boost is designed to help those over 16 access further studies and also give adults more opportunities later in life through additional skills boot camps. 

The Government will also launch a UK-wide numeracy service called Multiply which he believes will help 500,000 adults improve their numeracy.

Alison Andreas, principal and chief executive at Colchester Institute, has welcomed the news but is cautious about how the promises will be rolled out. She said: “It is great to hear of the Government’s intention to recognise the importance of post-16 education in this budget and in particular to hear of the focus on professional and technical training and skills for young people and adults. 

“This investment demonstrates ministers’ acknowledgement that the further education and skills sector, and colleges like Colchester Institute, are vital to the post-Covid, post-Brexit recovery and to Levelling Up.

"As always, of course, the devil will be in the detail, so we look forward to hearing more about how the suggested £3.8billion will be distributed and the purposes, programmes and people for which it is intended.” 

University of Essex’s Dr Zentler-Munro is also slightly sceptical and says money is not enough to fix the adult skill gap.

He added: “Recent research at the University of Essex and University of Edinburgh highlights skill gaps are preventing workers of all ages from finding jobs in the growing parts of the economy.

“Day-to-day adult education funding is still below the levels seen in the 2010s; the danger is the one-off investments of the size announced today will not be sufficient.”

School students across the UK will each benefit from an additional £1,500 in education funding as part of the Budget. 

Chancellor Rishi Sunak believes his plans to plough £4.7billion into the sector will result in funding per pupil returning to the same levels they were at back in 2010... and could result in pay rises for school staff.

The Government has also vowed to create 30,000 more spaces at special educational needs schools and allocate £1.8billion in extra education recovery funding across the next few years.

However, the big figures did not impress all.

Kevin Courtney, joint general secretary of the National Education Union, is critical of the claims made during the Budget announcement and has slammed Mr Sunak for his approach.

He said: “The Chancellor Rishi Sunak had a historic opportunity to value education and value educators. 

“Despite his rhetoric he has failed. 

 “The aspiration of ‘levelling up’ is a good one but Government policy on education is achieving the opposite. 

“The Chancellor is also still determined that education recovery will be done on the cheap. 

“This short-sightedness will damage the life chances of young people for many years to come. 

“Taking so long to restore the cuts made from 2010 onwards should not be a matter of pride for any Government, but one of embarrassment.

“The Chancellor has offered a fraction of what is needed.

“It is not valuing educators. Schools and colleges need more support to help children succeed. 

“The Chancellor has only underscored his failure to deliver.”

Chancellor Rishi Sunak has also increased the Minimum Living Wage from £8.91 to £9.50...but the gesture failed to impress all. 

It will come into force next year and represent a 6.6 per cent rise per hour, which equates to more than £1,000 a year extra for full time workers. According to the

Chancellor it will benefit more than two million of the lowest-paid workers in the country, but some people have been left feeling it is still not enough. 

But Dr David Zentler-Munro, from the University of Essex’s department of economics, believes the hike will not be enough to protect and support low-income workers still struggling following the pandemic.

He said: “The increase to the minimum wage will provide a welcome boost to earnings and offset higher consumer prices. 

“However, the well-being of low paid employees is determined by many factors other than wages, including hours worked, regularity of shift patterns, potential for career progression and much else besides.

"The risk is this concentration just on the minimum hourly wage fails to address these other factors. 

“A wider debate on support for the wellbeing of those in precarious employment is therefore badly needed.”

Gary Smith, general secretary of the GMB trade union, said it was a step in the right direction but the fight to truly rejuvenate the wallets of workers’ families is far from over. 

“Let’s be clear about what the minimum wage is,” he said. 

“It doesn’t lift people out of poverty, it is a statutory minimum for four age classifications and apprentices. 

“And while it raises that minimum threshold the increase isn’t going to level-up workplaces and communities across our regions and nations.

“Tackling the growing understaffing crisis and the damage done by a decade of ruinous Tory cuts is going to require substantial increases across key areas of the economy.”

“So, lifting the minimum wage merely represents a small step in a marathon of change if the Government has any credible hopes of ending the low pay and insecure work which is so prevalent across our economy.”