Labour councillor says Northamptonshire MP ‘living in cloud cuckoo land’ over Chancellor Kwasi Kwarteng's mini-budget

Labour councillors in West Northamptonshire say those who believe Chancellor’s mini-budget will solve the cost of living crisis are “living in cloud cuckoo land”.

Daventry MP and Northern Ireland secretary Chris Heaton-Harris claimed measures announced by Kwasi Kwarteng on Friday (September 26) will “help create jobs, increase wages and encourage investment in businesses — helping with the challenges we are facing due to cost of living pressures and delivering prosperity for Northern Ireland and the UK”.

But the opposition group on the Tory-run council claimed the Government is cutting taxes for the rich while thousands go without heating or eating in Northampton, Daventry and Towcester.

Leader Wendy Randall replied to Mr Heaton-Harris’ tweet: “Seriously Chris! Are you living in cloud cuckoo land?”

Daventry West councillor Ms Randall added: “The mini-budget was a massive giveaway for the richest in this country whilst many families in West Northants are struggling to heat their homes and put food on the table.”

Among the £45bn set of tax-cutting measures outlined in Mr Kwarteng’s Commons statement was the scrapping of the 45p additional rate on anyone earning £150,000 or more and the axing of the bankers’ bonus cap.

Mr Kwarteng has insisted his mini-Budget is “fair” as he has cut taxes across income brackets, with the basic rate of income tax slashed from 20 percent to 19 percent.

But independent think tank Resolution Foundation analysis found his tax-cutting spree would see the richest five percent of earners’ incomes grow by two percent next year while 95 percent of the population will get poorer as the cost-of-living crisis continues.

Analysis by West Northants Labour revealed 62,800 adults in the area are already falling behind on household bills – and 34,889 have gone without food.

The five percent tax cut for the highest earners will cost the UK £2.3 billion a year with the Government rejecting Labour's proposal to instead raise £8bn by taxing the £170 billion excess profits energy companies have made in the last 12 months.

Ms Randall said: “The mini-budget was a massive giveaway for the richest in this country whilst many families in West Northants are struggling to heat their homes and put food on the table.

“By scrapping the top rate of income tax, the Conservative party will spend more on the wealthiest people in this country this year than they have on the entire levelling up fund.

“The majority of that will benefit London and the south — but in West Northants and the Midlands we have been made to bid for crumbs.

READ MORE: Martin Lewis calls government mini- budget a ‘staggering statement’ as Kwasi Kwarteng announces tax cuts

“The Conservatives are gambling with our mortgages and livelihoods, for the benefit of a few at the very top.”

Markets tumbled in response to the Chancellor’s measures with the the pound slumping to a record low against the dollar on Monday (September 26).

Independent researches the Institute for Fiscal Studies claimed “the Chancellor announced the biggest package of tax cuts in 50 years without even a semblance of an effort to make the public finance numbers add up.”