Opposition politicians have criticised the Chancellor's spending announcements today, arguing they do not go far enough to help those struggling the most.

Labour

Labour's shadow Chancellor Rachel Reeves zeroed in on the lack of taxation on firms which are huge profits in the current climate, for example energy companies.

She said increasing energy prices would mean Labour’s plan for a windfall tax on energy companies’ profits would raise twice as much as when it was proposed in January, which could be used to cut VAT and provide a targeted warms home discount.

She told the Commons: “When I set out Labour’s plans for a  windfall tax in January we estimated that it would have raised £1.2 billion, now because of the continued rise in global oil and gas prices it would today raise over £3 billion.

“That’s money that could be used to help families and pensioners and businesses with a cut to VAT, a real Brexit dividend that would help working families and pensioners across our country, and a targeted warms home discount that would see families and pensioners on the lowest and modest incomes being supported by £600.”

She also criticised the SNP, saying it was "deeply regrettable” that the SNP agrees with the Government on shielding oil and gas companies from a windfall tax,.

The shadow chancellor said: “Who does the Chancellor prioritise? He continues to defend the record profits of oil and gas producers who themselves admit that they have more money than they know what to do with.

“BP describes this crisis as a cash machine. But it is British people who are paying out.”

She added it was “deeply regrettable that the SNP have joined the Tories in wanting to shield oil and gas producers” from Labour’s proposed windfall tax on their profits.

 

SNP

Alison Thewliss MP, the party's treasury spokeswoman said the budget was "thin" and would fail to help those who are already on the breadline. 

She said while the National Insurance threshold rise was welcome, there was no support for those who were disabled, out of work, and other groups for example WASPI women who are losing thousands in their pensions.

The Glasgow Central MP said: "He could have looked at windfall tax and profits, yes to oil and gas but also Amazon, Serco, Netflix... why should they not have to pay up? They've made mega profits through the pandemic.

"And the chancellor has a windfall of his own.

"Tax revenues are higher than expected. The deficit is £30 billion more than planned. And looking at the OBR reports that came out today, VAT has gone up by £21.7bn extra in the Chancellor's Office coffers." 

Lib Dems 

Liberal Democrat Treasury spokeswoman Christine Jardine MP said: "Families were looking to the Chancellor to offer them hope, instead he is adding to their pain by refusing to scrap his unfair tax rises. 

"People seeing the biggest plunge in living standards in fifty years will see through the Chancellor’s spin.

"Rishi Sunak has failed to introduce a windfall tax on the super profits of oil and gas producers, which could have raised billions to help people with their energy bills.

"And he has refused to bring in an emergency cut to VAT, as Liberal Democrats have called for, which would put £600 back into the pockets of the average family." 

Scotland Office 

Scottish Secretary Alister Jack said the measures would help Scots struggling with the cost of living.

He said: "Measures announced by the Chancellor will help address the big issues facing people in Scotland and right across the UK.

"Families across the country are struggling with the cost of living.

"The reduction in fuel duty, zero VAT on green home improvements, and a tax cut for low and middle earners will help them with these growing pressures.

"And an extra £45 million for the Scottish Government will allow them to provide additional support to the most vulnerable families over the coming months.

"The Chancellor also reiterated our steadfast support for the people of Ukraine. I know people across Scotland will stand with him on that." 

“These are undoubtedly challenging times, but action taken by the Chancellor in the Spring Statement will help the UK Government build a stronger, more secure economy for everyone.”