Conservative MP has 'serious reservations' about announcements in government's mini budget

A Conservative MP says he has "serious reservations" about some of the announcements made by the Chancellor during the mini budget.

Robert Largan, the MP for High Peak in Derbyshire, says cutting the top tax rate for the best paid in the country was a mistake during this "deeply worrying time" for the economy.

He is now calling on the Government to take a pragmatic, responsible approach to look after the vulnerable people during the cost of living crisis.

In a series of tweets where Mr Largan responded to the announcements made by Kwasi Kwarteng he praised some of the measures put in place including giving people "certainty on their energy bills".

But he added that government needed to take a "pragmatic, fiscally responsible approach".

He said: "However, I have serious reservations about a number of announcements made by the Chancellor.

"I do not believe that cutting the 45p Top Tax Rate is the right decision when the Government's fiscal room for manoeuvre is so limited. In my view, this is a mistake.

"This is a deeply worrying time.

"Elected officials need to be honest about the choices we face and Government needs to take a pragmatic, fiscally responsible approach on the short-term support needed for people and long-term strategic thinking to ensure our energy security.

On 23 September Chancellor Kwasi Kwarteng announced a tax-slashing 'mini-budget' comprising of £45 billion of cuts, and a huge welfare system shake-up.

He outlined his plans to MPs in the Commons in an emergency announcement, as Liz Truss' government set out its plan to tackle the rising cost of living and inflation.

Mr Kwarteng introduced a package of measures, including: stamp duty cuts, cancelling a planned corporation tax rise, and confirming help for households and businesses struggling with soaring energy bills.

A huge increase in government borrowing will fund the tax cuts for the plan, which Mr Kwarteng said would deliver higher wages, greater opportunities and fund public services.

But critics claim the government's approach reveals a misguided faith in "trickle-down economics" - the idea cutting taxes for the wealthy and for businesses will ultimately benefit all.

Praising parts of the budget, Mr Largan, said he was "pleased the new Prime Minister acted within 48 hours of taking office".

He wrote: "Since January, I have been calling on the Government to take radical action to help people and businesses cope with rising energy bills through this winter and buy us time to scale up our own energy production (both renewable and nuclear) to ensure our long-term energy security.

"So I was pleased that the new Prime Minister acted within 48 hours of taking office to provide families and businesses certainty on their energy bills, by announcing a new Energy Price Guarantee to limit the price suppliers can charge consumers for the next two years.

"Household bills will be limited to £2,500 per year. In real terms, this means someone in an average semi-detached house will save £1,150 per year on their bills.

"This is on top of the £400 for every home and the £1,200 of support for the most vulnerable households already announced.

"Crucially, energy prices for businesses will also be capped, which will help protect jobs too.

"A discretionary fund will also be made available to help those living in park homes or who use domestic heating oil, which is really important for people living in more remote areas.

"Considering the Government's Plan for Growth, there are a number of measures that I welcome. In particular, the announcement that the basic rate of income tax will be cut from 20% to 19% from next April.

"31 million taxpayers will benefit from this tax cut, with someone on an average salary saving £170 per year.

"This comes on top of the significant increase to the National Living Wage and the triple-lock which will ensure a substantial increase in pensions this year."

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