February always feels like the bleakest month.
The cold days and the long nights remind us that although it is the start of a new year, it is still the depth of mid-winter. Normally, the approach towards spring is an antidote the January blues.
However, for thousands of families in Reading, Woodley and Earley, the spring will bring a cost of living squeeze, the like of which we have not felt since the 80s.
From my regular conversations with constituents, it is clear that local people are concerned about the impact that tax rises, soaring energy bills and increases in inflation and interest rates will have on their household budgets.
The announcement that April will see the energy price cap lifted by 53% – adding an average of £700 to every household bill – was a shock to many people who have already seen their energy costs go up and up.
But to add insult to this injury, the same day as we were told that we would have to pay more for our gas and electricity, Shell announced a record £12bn of profit.
Those on low incomes will face the unenviable choice of eating or heating while seven-figure bonuses will be paid to the directors of big oil and gas companies.
Of course, because the Government refused to follow Labour’s suggestion and cut VAT on fuel bills – for every £1 that our energy bills rise, and extra 5% goes to the treasury in tax.
The Government is raising the bill and then taxing us.
But that is not the only tax going up.
The Chancellor of the Exchequer has confirmed that his National Insurance increase will also go ahead – taking more money out of the pay packets of everyone working person in Woodley, Earley and Reading.
It breaches a manifesto commitment, and it hits both employers and employees at a time when every penny counts.
Raiding the wage packets of working people is the wrong thing to do.
It’s also an extraordinary burden to place on those with the least, particularly when the Government has written of £4.3bn in fraudulently claimed covid support payments which prompted the resignation of Lord Agnew, the Minister responsible for fraud reduction.
It’s a catalogue of errors and poor decisions which will leave us all worse off.
Matt Rodda is the MP for Reading East
