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Labour’s Budget provides breathing space for the households and businesses most in need, against the global backdrop of global uncertainty and economic pressures. For families and high streets across East London, the Chancellor’s announcements combine both crucial cost-of-living relief with long term investment in housing, economic stability, and national security.
The immediate focus of this Labour Budget is putting money back into the pockets of local people and helping to ease financial pressures. Households in Council Tax Bands A to D will receive a £100 energy payment directly into their bank accounts this January. In Bethnal Green and Stepney alone, around 45,580 households stand to benefit from this direct cash support. To lower energy bills, we are extending the 0% VAT rate on electricity through to July 2027 and we are eliminating gas standing charges altogether. For drivers, a fuel duty freeze alongside an extension of the 5p cut will save drivers an estimated £230 across this Parliament. This Labour Government is also raising the National Living Wage to £13.21 an hour and the National Minimum Wage to £11.27, delivering a well-deserved pay rise to 2.3 million workers nationwide.
Our high streets and local businesses are also getting vital backing from the Labour Chancellor. Through new business rates thresholds, 70,000 small businesses across the country will be made exempt from business rates. In London, these changes mean around a third of all retail, hospitality, and leisure properties will pay no business rates at all, providing much-needed relief to our treasured local high streets.
This Labour Budget also included key measures to help tackle the many housing challenges people face in East London. Building on our previous £39 billion commitment, the Chancellor announced an additional £1.5 billion for social and affordable housing. For local first time buyers struggling to get on the ladder, the new Your First Home initiative will assist around 70,000 first-time buyers in purchasing new-build properties with smaller deposits and mortgages. The Budget also included a further £430 million to end rough sleeping this winter. Alongside housing, the Budget also dedicates £55 million to tackle violence against women and girls, ensuring essential funding reaches safety services across our communities.
This Budget also invests in the huge potential of East London. The Government is collaborating with the Greater London Authority to explore enabling international rail services at Stratford International, aiming to bring jobs and opportunity to our area while strengthening European connectivity.
By delivering immediate breathing space and funding long-term growth, this Budget takes the decisive steps needed to build a fairer future for East London and the country.
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Rushanara Ali
Labour Member of Parliament for Bethnal Green and Stepney
