By GB News (Politics) | Created at 2024-11-01 09:19:40 | Updated at 2024-11-01 12:23:17
3 hours ago
Budget tax hikes sparked furious debate on GB News as former Labour minister Denis MacShane insisted it’s not all “doom and gloom”.
He expressed his delight at investment into AI (artificial intelligence) and green projects, but was met with a furious response from Nadhim Zahawi’s former chief of staff James Price.
MacShane told Stephen Dixon and Ellie Costello he expects the Budget to be forgotten about in the days to come.
“I did 18 budgets as an MP and they are always identical. The first day, the Chancellor makes a big statement, the second day it starts to pick up and the third day, it’s a catastrophe”, he said.
Shaking his head in dismay, Price hit back: “Public services rely on a strong economy and businesses making money and people being able to have some money left over that gets taxed.
“As a result of this budget, growth will be even lower than it was going to be beforehand because of all the borrowing and extra taxes and all the other incentives that will make the wealthiest people in society up sticks and leave. A quarter of all non-dom people are going to leave once this is done.
“That means less money for people to spend on public services. The thing that upsets me is Labour either don’t understand that or don’t care.”
A smiling MacShane was asked by Ellie Costello why he is “laughing”, something the former minister insisted he was not doing.
But he admitted to feeling “worried” for Price, saying he was perpetuating “doom and gloom” on GB News.
“People’s livelihoods are on the line this morning, I don’t think that’s something to laugh about”, Price furiously hit back.
MacShane argued: “You’re offering no perspective. Don’t cut across me, I didn’t cut across you.
“I heard on the BBC this morning the head of one of Australia’s biggest financial services firm moving to Britain because they are really excited about Britain’s investments. That is what grows the economy.
MacShane and Price joined Stephen Dixon and Ellie Costello on GB News
GB NEWS
“It would be lovely to have no tax. We’ve had 14 years of Tory austerity and the lowest growth rate in Europe. There’s no magic money tree, that’s for sure. Now you’re in opposition, you seem to think there is one.”
Chancellor Rachel Reeves admitted yesterday that lower pay rises are likely due to tax increases.
The Chancellor acknowledged her decision to raise national insurance contributions (NIC) for employers could affect wage growth for private sector workers, or companies will have to absorb costs.
Reeves also said she did not want to repeat the £40 billion tax rises she implemented in her first Budget “ever again”.
Choices made by the Chancellor will see the overall tax burden reach a record 38.3 per cent of gross domestic product (GDP) in 2027-28, the highest since 1948.
Despite Labour’s promises to protect “working people”, a £25.7 billion increase in national insurance contributions paid by employers is likely to reduce wages and lead to job losses, something Ms Reeves herself admitted.
