THE Former leader of Harlow Council has severely criticised Labour’s budget, delivered by chancellor Rachel Reeves on Wednesday.

Councillor Russell Perrin said: “Like many others over the last few months, I have been left dumbfounded by the increasingly bizarre and hyperbolic statements made by the Chancellor, Rachel Reeves. It is clear that this budget, like last year’s, is intent on harming the very people Rachel says she is hell bent on protecting.

“What astonishes me the most is that much like the arsonist who claims credit for putting out his own fires, Rachel appears to want to claim credit for trying to solve problems of her own creation. Beyond the firefighting, the most striking thing about this budget, and the Government at large, is its lack of vision. What kind of country do they want us to be?

Is it a greener country? No. Anyone who has an electric car will now pay a mileage tax, contributing an extra £1.4 bn in total.

Is it a country of growth that supports business and entrepreneurship? No. Further changes to corporation tax mean businesses will pay an extra £1.5 bn in tax.

Is it a society that promotes saving and helping people work towards a pension? No. The ISA allowance is being lowered for savers from £20,000 to £12,000. This, along with other changes to pension tax, savings tax and salary sacrifice, means working people will pay a whopping £6.8 bn extra in tax.

Is it a low tax society? No, certainly not. After repeatedly telling voters she would not tax working people more by increasing income tax, she has done exactly that by freezing tax thresholds.

Freezing tax thresholds means more ordinary workers will pay more tax, even if their living standards don’t improve. Someone on £50,000 today pays no tax on the first £12,570 and 20% on the rest, but if their pay simply keeps pace with inflation, they could earn nearly £60,000 in five years, no better off in real terms. Yet they would then pay the 40% rate on about £10,000 of their income, despite not doing so now.

Those earning just above £12,570 are hit too. Even small inflation linked rises push more of their income into the 20% band, reducing the value of every pay rise. And around a million low earners will start paying income tax for the first time as their wages creep over the frozen threshold.

Things get even worse if growth doesn’t improve. If pay fails to keep up with inflation, the squeeze is even harsher. For example, if inflation averages around 3% a year but wages rise only 1-2%, a typical worker can lose several percentage points of real income over five years, equivalent to hundreds or even a few thousand pounds in spending power. That means everyday essentials become harder to afford while frozen thresholds continue to pull more of their earnings into taxation.

“Still there is some good news. Having made a cursory glance at research undertaken by the website Landlord zone. David Lammy and Emily Thornberry are part of a new cohort of Labour MP’s who have London Properties valued in excess of £2M making them liable to pay the new property surcharge otherwise named the ‘Mansion Tax’.