Autumn Budget: some welcome changes, but not enough

Rachel Reeves, Chancellor of the Exchequer, announced this Labour Government’s first budget on Wednesday. Although many of the changes announced are welcome ones, we remain concerned about the levels of poverty and inequality, which this budget does not do enough to address.  

At Church Army, we work with some of the most vulnerable communities in the UK, many of whom face the sharpest reality of the cost-of-living crisis that we are living in. We believe that everyone everywhere should be able to flourish, and we believe this is what God desires. This means that nobody should be living in poverty and being forced to worry about their next meal, it means that the most vulnerable in our society should be supported properly.  

We welcome the Chancellor’s announcements in Wednesday’s Autumn Budget, of the 6.7% rise in the minimum wage to £12.21 and the greater support for carers by allowing them to earn more without losing their benefits. These changes will improve the lives of many of those on low-incomes and caregivers who are often unpaid for essential work. However, this increased minimum wage still lags behind the real living wage, meaning that workers earning the minimum wage remain unlikely to be able to afford what they need to live.  

It is also encouraging to see the increase in wealth taxation, including on private school fees, capital gains and inheritance tax, the money from all of which should help fund investment in public spending that will benefit everyone, such as the NHS, schools and housing.  

While we welcome those changes, the reality is that poverty is still increasing, with 14.4 million people living in poverty in the UK. In our work at the Marylebone Project, Ty Bronna and many of our Centres of Mission, we walk alongside many of the people behind that figure, experiencing homelessness, hunger and hardship. Our support is critical because support from the Government and councils is not sufficient.  

To improve the lives of these 14.4 million people, and many more who are struggling, the changes announced needed to have been more. This could have included the extension of the £2 bus fare cap, instead of increasing this to £3, which will affect the poorest the most, who are more likely to rely on bus services, as well as including greater housing support.  

At Church Army we are committed to community support and social justice for all, which must include greater support for the vulnerable and those living in poverty. We continue to advocate for a Social Justice Minister in government, to help elevate the voices of some of the most deprived communities in the UK and ensure that policies work towards eradicating poverty and austerity. This role is crucial for ensuring accountability and a commitment from the government to real action in addressing injustice and inequality.  

While there were announcements in this budget that we welcome, there remains a very long way to go to properly support so many of the people we work with, who struggle to get by and are neglected by the system.