Sir Geoffrey writes for the Wilts and Glos Standard.

I was sitting in the chamber when the Chancellor delivered her greatly disappointing Spring Statement.

This is always an important fiscal event as it does affect all my constituents, their jobs, savings and their businesses.

I am aware times have been tough, but I don’t think that this Government has made things easier for anyone, let alone ‘working people’ who work for and run businesses and contribute to the local economy.

Without a thriving wealth creating private sector, we cannot pay for the tax consuming public sector which is now consuming more than our total earnings. The Chancellor is now learning this the hard way at the expense of all of us.

The Prime Minister started PMQs by saying that economy has grown ‘further and faster’ since the Labour Party took office. Yet, the figures from the OBR show that we are moving further and faster into debt.

Since the Autumn Budget, the Chancellor confirmed that the growth prediction has now halved from two per cent to just one per cent.

Even worse, she confirmed that growth is not due to be more than 1.8% by 2029, which is four years away.

The Chancellor also confirmed that our tax burden in 2027/28 is going to be the highest it has been since the second world war, a record of 37.7% of GDP.

When taxes such as National Insurance (NI), the family farm tax, very large increases in the minimum wage all come into effect on 6th April and provisions in the Employment Rights Act estimated to cost £5 billion are literally sucking the life blood out of the business so they cannot grow.

Business is not encouraged to employ under these conditions.

Rather than rethink her policy on these taxes, she has double downed on them. In addition, because of freezing the tax bands, a record 36 million are paying a higher tax rate for the first time.

I have had many businesses and charities write to me raising concerns about what effects the rise in NI will have on their running costs, including hospices, charities and GP surgeries.

The Labour Government voted down our amendment that would have made these organisations exempt, and have not provided any more money for them to cover their costs.

Not only has this NI rise led to business confidence sinking to the lowest since the pandemic, but it has led to a hiring freeze and an increase in unemployment.

Unemployment is now the highest it has been since the pandemic at 4.4%, especially for young people, and will keep rising year on year.

Instead, the Chancellor stood at the despatch box stating that the opposition did not have any better ideas.

When we left office, inflation was down to 2%, interest rates were coming down, and taxes for working people were cut. Jobs particularly amongst young people were at record levels since the war.

Now, inflation is at 2.8% meaning that interest rates are staying higher for longer. The Bank of England expects inflation to rise further due to increases in energy bills, council bills and water bills which are hitting doorsteps this month.

This all means less money in people’s pockets as prices are higher and mortgages cost more.

We are yet to hear the spending reviews for each department which are due in June 2025, but from the news that has been dripping out, further savings and cuts will have to be made.

So borrowing and taxes are at a record high, unemployment particularly amongst the young is up, inflation up, interest rates remain high, and growth is very weak.

Sadly this means that the chance the economy will go into recession remains a real possibility and the Chancellor will have to pursue a second instalment of tax increases.

I hope this is not the case.