The Isle of Wight Labour Party has welcomed a Budget that it says gives Island families and businesses breathing space, while delivering the big structural changes needed for the future.
The following release has been written and supplied by the Isle of Wight Labour Party.
Chancellor John Healey has unveiled a Budget that Labour says will provide support for households, drivers, pensioners and businesses across the Isle of Wight.
Energy
We all know that bills are way too high, so Labour are giving over 6,000 Isle of Wight households £100 to help with bills, paid directly into bank accounts in January.
The Household Energy Payment, which will be paid to all eligible Council Tax band A-D households, will deliver over £6 million of support to Islanders this winter.
Around 35,000 Island households will see their energy bills reduced by £108 per year on average as Labour extends the VAT cut on electricity and scraps standing charges on gas bills. Because frankly, if you’re not using it, you shouldn’t be paying for it.
Drivers
To put more money back into the pockets of Islanders who rely on their cars for work, Labour are permanently increasing the generosity of tax-free mileage rates.
Extending the freeze on fuel duty and deferring the planned Retail Prices Index increase to 1st July 2027 will save car drivers on the Isle of Wight £230 on average across this Parliament, and means petrol and diesel will be 15p per litre cheaper from April 2027.
Wages
There’s more breathing room for working households, as the National Living Wage will increase by 3.9% in April to £13.21 per hour.
This uplift represents an increase of £910 per year for a full-time worker and will deliver a pay rise for over 4,000 Islanders.
Pensions
Pensions are also going up.
Over 42,000 Islanders will see their State Pension rise by 3.9% next April, taking the full new State Pension to £13,036.40 a year – none of which will be subject to Income Tax thanks to the new Pension Tax Allowance.
Relief for Island businesses
The Chancellor announced welcome relief for Isle of Wight businesses.
On top of the extra 20% business rates cut for pubs and live music venues, announced in July, all retail, hospitality and leisure businesses on the Island will see their business rates either frozen in real terms, reduced or, in many cases, cut to zero.
Vape shops and adult gaming centres will no longer benefit from certain business rates reliefs – ensuring support is targeted towards the shops, pubs, cafés and other businesses that help our communities thrive.
Lorna Feilker, Labour Candidate for Mayor of Hampshire and the Isle of Wight, celebrated the announcement that, by the end of the decade, 100% of Business Rate revenue will be retained locally and local Mayors will get a cut of income tax revenue.
She said:
“Today’s Budget shifts investment from Westminster into Hampshire and the Isle of Wight. But devolution only matters if that money is spent where it’s needed most.”
Richard Quigley, MP for Isle of Wight West, welcomed the Budget, saying:
“Today’s announcement from the Chancellor demonstrates a real commitment to both the future of our economy and the next generation of workers.
“As a small business owner myself, I know first-hand the impact that decisions taken at the Budget can have on businesses large and small. It has been great to engage with the Treasury throughout this process, and I genuinely believe that in John Healey we have a Chancellor who is determined to champion entrepreneurship, back enterprise and support the businesses that drive growth in our economy.”
The Isle of Wight Labour Party added:
“This Labour Government is working long-term to bring back hope and build a fairer country. But we know that takes time and people need help right now.
“The measures announced in the Budget are going to give Islanders the breathing space we need today, while Labour in government gets on with delivering fresh hope for the future too.”
