Northumberland MP welcomes Budget support for families and high street businesses but Conservatives claim farmers being let down

Thousands of households will receive direct help with energy bills, while more local businesses will benefit from business rates relief.

The measures, announced by Chancellor John Healey, form part of a Budget designed to provide breathing space for families while making the long-term choices needed to put the country on a better course.

Eligible Band A-D households in England will receive a £100 Household Energy Payment to help with rising energy costs, with around 40,450 properties in North Northumberland set to benefit. The scheme will be funded through a 3% increase in the Bank Surcharge for 15 months.

The Chancellor also extended the temporary 0% VAT rate on electricity until at least 30 June 2027, while Ofgem will work to abolish gas standing charges.

There is also targeted support for the high street, with a £1 billion business rates package that will see the Small Business Rate Relief threshold raised from £12,000 to £18,000 for Retail, Hospitality and Leisure (RHL). The new thresholds mean that an estimated 52% of all RHL properties in the North East will pay no business rates at all.

The increase in threshold, along with wider business rates support, will be funded by raising duty on higher-stakes gaming machines from 20% to 25%, excluding adult gaming centres and vape shops from certain business rates reliefs, and tightening rules on online marketplaces to make it harder for sellers to avoid paying VAT.

Mr Smith, Labour, said: “I know that many of my constituents are worried about energy costs as we go into the winter, particularly those who rely on heating oil and LPG to heat their homes, and the £100 payment will ease the pressure for thousands of local families. This follows the 4% tariff cut on kerosene heating oil announced earlier this week, which should help reduce costs and improve supply.

“I’ve also heard from many small businesses over the last year who are struggling with rising costs, so the increased Business Rate Relief threshold is really welcome. It will make a difference to local businesses and give our high streets and town centres a boost.

“This is good news for families and businesses across North Northumberland. The key thing is that this help is being delivered in a responsible way, with sensible choices about how it is paid for. These are Labour decisions: backing families and businesses today while building a stronger Britain for tomorrow.”

North East Mayor Kim McGuinness added: “I'm delighted to see the vast majority of households in the region will receive £100 to go towards energy bills and hundreds of our high street businesses will no longer pay business rates."

However, Northumberland Conservatives say farming families are being let down.

“Yesterday’s Budget offered no U-turn on the Family Farm Tax,” they posted on social media. “Generations of farming families have worked tirelessly to feed our nation and protect our countryside. Now their livelihoods and family legacies are at risk.

“Family farms are not cash machines. Farmers deserve support, not more financial pressure.”

They added that an increase in employers’ National Insurance makes it more expensive for businesses to employ people.

“From independent shops and cafés to pubs, farms and larger employers across Northumberland, businesses are still facing higher employment costs. Higher costs mean less money to invest, expand, increase wages and create new jobs.

“Our local businesses are the backbone of Northumberland’s economy. They need support to grow, not more taxes holding them back.”