The chancellor has today (15th March) set out his 'Budget for Growth', which will affect the ways in which we spend our money for the next financial year.

Retirees were amongst some of the most rewarded within his plan, with the most wealthy benefitting from the lifetime tax-free pension allowance being abolished. It previously had a tax limit of £1million, frozen until 2028.

The annual tax-free allowance for pension contributions was also upped from £40,000 to £60,000 a year. Jeremy Hunt claims this is to encourage high earners to stay in the workforce for longer.

Some parents will also benefit from the new Budget, as free childcare has been extended to cover one to two year olds in a bid to get parents back to work sooner, which the Chancellor says will help with overall economic growth.

Opposition leader Kier Starmer criticised the pension allowance plans, highlighting that the only tax cut in his plan was suited to the richest people in the country.

Locally, Politicians have been echoing Starmer's thoughts.

Following the Chancellor's Spring Statement this afternoon, Metro Mayor Dan Norris said: “The hit to living standards over the past two years is the largest since records began. West of England people are feeling it every day in their pockets. Today the Chancellor told us working people will keep paying the price of 13 years of Conservative economic mismanagement while the top 1% get a surprise bonus in their pension pots.“I welcome the £18million for education and skills projects across our region including new and improved facilities at Bath College (Radstock campus), Bristol College and SGS. I’m proud to have secured this funding to help our young people to thrive. It will also mean a new site for 14 manufacturing firms at Hengrove Park plus investment in hydrogen at the University of Bath as we continue in our quest to make the West of England a national and global leader in this clean fuel."“I also cautiously welcome the objective of multi-year funding settlements for all Mayoral Combined Authorities – and await further details." “The Tories do not have the long-term plan to address the challenges of today. After all this time - all these Budgets and plans, Chancellors and prime ministers - wages have still stagnated, taxes have risen and our public services are creaking. The West of England has so much potential - we have the drive to do whatever we put our minds to. But we have a government that is an anchor to progress - one that is out of ideas and out of time”.

Other areas of the budget were slammed by a Bath MP.

Responding to the Spring Budget today, Wera Hobhouse, Liberal Democrat MP for Bath, has condemned the Government's plans to increase energy bills as “so out of touch they might as well be on a different planet.”

It comes as Jeremy Hunt confirmed that energy bills will remain at £2,500 for the next three months, meaning the typical household energy bill will be double what it was in April 2021. The Chancellor also scrapped the £400 discount on bills which most households received this winter.

The Liberal Democrats are calling on the Chancellor to cut the Energy Price Guarantee by £500 per household, funded through a proper windfall tax on the record profits of oil and gas companies. This would mean average bills would drop to £1,971 a year, with the support in place until next April.

The Liberal Democrats are also calling extra targeted support for the least well-off households, including doubling the Warm Homes Discount to £300.

Analysis from the Lib Dems based on official local electricity and gas consumption statistics show that households in Bath and North East Somerset would save an average of £320 each under the party's plans. This would mean total savings of £25.1 million for local families. 

Wera Hobhouse, Liberal Democrat Climate and Energy Spokesperson and MP for Bath, commented: 

“The Conservative Government’s choice to hike energy bills will come as a hammer blow to families already struggling with soaring mortgages and rents, shopping bills and tax rises.

“These plans will push more families into fuel poverty, while oil and gas companies making record profits are let off the hook.

“The Conservatives are so out of touch they might as well be on a different planet.

“In these tough times, local people deserve a proper plan to tackle this cost-of-living crisis. That means a proper windfall tax, a £500 cut to energy bills and investment in our local health services.”

To view the full Budget set out by the Chancellor, visit the Government's website.