The North East reacts: Budget "hell of a hit" for small businesses and A1 decision unsurprising

Credit: PA

There has been mixed reaction across the North East to the first Labour Budget in 14 years.

The government hopes that their raft of policy announcements will convince the public that they can "rebuild Britain" - but what do people in the North East think?

People on Northumberland Street in Newcastle reacted to today's Budget which included a rise in the minimum and living wages.


The measures introduced by the chancellor Rachel Reeves include scrapping the dualling of the A1 from Morpeth to Ellingham, raising the £2 bus fare cap to £3, increasing the living wage, and a promise of cash for a Sunderland film studio.

ITV Tyne Tees has been across the region today, finding out how different elements of the Budget will impact people.

Winter fuel payments and state pension rise

It had been confirmed previously that winter fuel payments for some pensioners would be scrapped by the government and means-tested instead.

But in today's Budget the chancellor announced the state pension will rise by 4% in April - but many older people have not forgiven Labour over the fuel payments.

One pensioner at an Age UK coffee morning told ITV Tyne Tees that the decision on winter fuel payments will "make a heck of a difference as people will have to stop to think about what they can spend their money on and whether they can afford it."

Jane Wyvill from Age UK North Yorkshire and Darlington described a bleak picture for pensioners who do not meet the criteria for pensions credit.

She explained: "I went to see an elderly lady yesterday who can't apply for pension because she's just over limit.

"However, she's got illness and disability, she's got COPD meaning it's a struggle to move and she's sat in a chair all day and doesn't want to put the heating on because she can't afford it. It's heating or eating."

A1 dualling

After years of uncertainty, plans to dual a 13-mile stretch of the A1 in Northumberland from Morpeth to Ellingham have been scrapped by the government in the Budget. But for one business owner along the stretch of road - today's announcement came as no surprise.

Dualling the stretch of road had eventually been confirmed by the previous government just as they called the general election. But the plans were described as "unfunded and unaffordable" by Ms Reeves today.

National insurance increase for employers

For employers the Budget has caused controversy due to a hike in how much they will pay in national insurance contributions. It will rise from 1.2% to 15%.

Owner of Ali's Store in Middlesbrough, Zulfiqar Ali, told ITV Tyne Tees: "It's very hard to find the money for a small business we work 24 hours a day.

"With national insurance going up it's a hell of hit for a small business like ours and for us to employ more staff it's going to be very difficult to find the money.

"We wanted to put an extension on the business but that is now going to have to be on hold because of the financial impact this is going to have on our business.

"We work day and night to be put bread and butter on our table and now its getting harder."


Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To know...