MPs have warned the country is in crisis as cuts and tax rises as part of the government’s spending plans will have a significant impact on households and families. 

A majority of households will be worse off as a result of the Chancellor’s decisions, which will see the cap on energy bills increase and the tax burden rise to its highest sustained level since the Second World War.

Jeremy Hunt has been accused of pushing more people into poverty or even onto the streets, while benefits recipients say they face a “dark” Christmas due to tightened finances have said they fear rises unveiled in the autumn budget will come “too late”.

In an effort to get a grip on the public finances, Mr Hunt set out plans for almost £25 billion in tax increases and more than £30 billion in spending cuts by 2027-28.

Read more: How the North East will be affected by tax rises and new money in Autumn Statement

Responding to the announcements, City of Durham Labour MP Mary Kelly Foy MP said: “It is outrageous that the Chancellor attempted to lecture the country on managing the economy after the mess caused by his own Government.

“Ordinary working people are now poorer, and the public services we all rely on are collapsing - all on the Conservatives' watch; all because of the decisions they have made.

“It is arrogant and offensive. While living standards collapse and poverty rises, we have a Government completely out of touch.

“It has never been clearer that we need a Government on the side of ordinary people, and that means a fresh start with a fairer, greener Labour Government.”

 

The Northern Echo: Mary Kelly Foy MPMary Kelly Foy MP (Image: The Northern Echo)While acknowledging some positives, Tees Valley Mayor Ben Houchen said the public will have to face challenges. 

He said: “Today’s statement was a mixed bag, with significant cuts to spending in certain areas. However, the silver lining is that the schools budget is increasing - even taking into account inflation, with the same vital real terms increase for the NHS.

“This just shows that when you go through two years of a global pandemic, spending hundreds of billions of pounds, it has a long-term cost and this is the Government trying to get that spending under control and restore some financial credibility.

“Also pleasing to see was that Capital budgets have been protected, so that means we can continue to press on with the exciting projects we’re undertaking across Teesside, Darlington and Hartlepool – whether that’s Middlesbrough station, our Freeport, bringing forward Darlington station and all of the other good things.

"We’ll also continue to see lots of regeneration and new investment thanks to our Development Corporations in Middlesbrough and Hartlepool.

"It was also good to see the minimum wage rise to put more money in the pockets of people in Teesside, Darlington and Hartlepool. However, the stark financial forecast just makes my job even more important to make sure that we create thousands of good quality, well-paid local jobs which will last for generations."

The Northern Echo: Tees Valley Mayor Ben Houchen speaking at the Conservative Party annual conference Tees Valley Mayor Ben Houchen speaking at the Conservative Party annual conference (Image: PA)

But Labour’s Alex Cunningham, MP for Stockton North, fears we are close to crisis point. 

“Our country is facing a crisis made in Downing Street but instead of apologising for the mess they’ve made of our economy, the Chancellor used today’s Autumn Statement to not only blame everything but his own party, but also portray the Tories as people who will fix the economy. They are taking people for fools and asking working people to foot the bill for their mistakes.

“The Chancellor himself said that unemployment will soar under his plans and the Government’s Office for Budget Responsibility said that living standards will fall by 7 per cent in 2023/24. That’s not a budget for all the people.

“They offer no plan to get the country moving again, no vision for a prosperous future, just rehashed austerity and a long list of excuses. Never again can the Tories attempt to claim the mantle of economic competence. The sooner they are out of office, the better."

The Northern Echo: Alex Cunningham speaking during Prime Minister's Questions in the House of Commons, London. Alex Cunningham speaking during Prime Minister's Questions in the House of Commons, London. (Image: PA)

Middlesbrough South and East Cleveland MP Simon Clarke was briefly Levelling Up Secretary thanks to a strong friendship with former prime minister Liz Truss. But after being consigned to the back benches as part of Sunak’s reshuffle he took to Twitter on Thursday to share his thoughts on the Autumn Statement. 

In a series of tweets, he posted: “Warmly welcome the devolution announcements today - both trailblazer deals for West Mids and Manchester and a new mayoral deal for Suffolk. Brilliant team in @luhc should be proud of the progress made here. 

“The @Conservatives are ending the low wage trap. Hard work being rewarded. 

“The growth challenge remains.  I very much hope today’s package to balance the books is accompanied by tackling the causes of low growth.”

The Northern Echo: Simon Clarke MPSimon Clarke MP (Image: PA)

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