AS we enter the New Year, what we see happening will very much depend on how the global energy crisis unfolds.
It also depends on the effectiveness of the measures the Chancellor set out in his Autumn Statement last year. The Office for Budget Responsibility has forecast that both inflation and wholesale energy prices will fall this year. Let’s hope they are right! There is a view that interest rates have already peaked.
The government’s 2019 manifesto and the legislative agenda from last year remains unfinished. The Animal Welfare (Kept Animals) Bill, The Online Safety Bill, and the Social Housing (regulation) Bill must come through both the House of Commons and the Lords.
There are also critical pieces of legislation that while through the Commons must now complete their passage in the House of Lords. The Levelling Up Bill, the Northern Ireland Protocol Bill, and the Financial Services and Markets Bill must all complete this stage.
The legislative agenda is clearly sizeable, it will be a busy year! And that is even before we consider additional pieces of legislation that will emerge as the year progresses. The government has already hinted that legislation to tackle the unfair disruption caused by strike action will be forthcoming, and the Prime Minister announced legislation to tackle illegal immigration will arrive in the New Year. The government’s plate will be full, and Parliament will be busy!
The Chancellor will also deliver the Spring Statement. We can hope that the resolutions the Chancellor proposed in November will have by then delivered and that we therefore find ourselves on a more stable financial footing. What this recession will look like is anyone’s guess. It is unusual to have such low levels of unemployment. That will make a difference. As the cost of living is likely to remain high but stable, more people are likely to re-enter the job market.
The government has said it is putting together an additional package of energy support for businesses when their current scheme runs out at the end of March. It is the job of the government to ensure there is fairness and competition within the market, and that the regulator has the requisite powers to hold the energy sector to account for unfair dealing.
I wrote to the Chancellor last year on this matter. He has said he will look at this and hopefully some of my proposals will come through in the final design of the support package for businesses.
A review of the benefits system has also been promised by the government. This government is exploring how the welfare system can better meet the needs of disabled people, and how it can better build a system that enables people to work where possible. We are an outlier as compared to other countries in what has happened in our job market.
We have seen a very large number of young people choosing not to enter the job market and older workers retiring early. We need to understand why that is and how we can change it. Given current life expectancy few can give up work at 50 and have enough to live on through what would be a very long retirement.
Local government funding allocations were set just before Christmas, Based on the allocation and the current economic climate it may be a squeeze this year for Devon to deliver the services we want and need within budget. The solution is not to look to increase council tax by up to 5% when everyone is struggling.
Rather the council will need to look at how to do things smarter while delivering the local services we need. Transport and children’s services must be protected. I have offered to help and support both Devon County and Teignbridge District Council in their efforts to innovate.
And while peace may seem like a long way off, we must remain unwavering in our support for the people of Ukraine. They must win, for themselves – and for us.
As always, if you would like to book a surgery appointment (in-person or virtual) or raise a specific issue, please call my office on 01626 368277 or email [email protected] to arrange an appointment.