Political opinion: Andrew Griffith MP warns of Budget impacts on West Sussex residents

The Chancellor of the Exchequer’s Budget has delivered tax rises that will impact ordinary families, workers, pensioners, and employers who are already navigating the impacts from the last budget

The Labour government have confirmed they will bring in a new surcharge on homes valued over £2 million. This will mean homeowners having to pay between £2,500 and £7,500 more every year through their council tax. Property experts have warned that this targets pensioners who have lived in family homes for decades but are typically on a fixed income in their retirement.

The South Downs MP has calculated recently that more than 40,000 households in Chichester, Horsham and Arun might be targeted for the surcharge through their council tax. He also points out that this money will be taken out of West Sussex and instead given to the Treasury to spend elsewhere in the country. This means that local residents will end up paying for adult social care and new roads in areas that they have absolutely no connection to.

The basic rate of dividend income has risen from 8.75% to 10.75%, while the higher rate has moved to 33.75% to 35.75%. Income from investments is a source of pension for many retirees and business people, but from April 2026 this will be taxed at 2% more than it is today. Higher tax rates on dividends, property and savings income will harm the local property market, reduce retirement income, and curtail entrepreneurs who want to set up businesses and create jobs. The MP worries what this means for the thousands of small businesses operating across rural areas of West Sussex.

A majority of rural residents are reliant on their cars to access work, shops, railway stations and health centres. But the Budget announcement included a “mileage-based charge” on battery electric and plug-in hybrid cars.

Andrew Griffith MP said: “This is a terrible Budget, but it is especially bad for those who live right here in West Sussex. Labour don’t care for rural residents and have effectively delivered a ‘rural penalty' for residents in the South Downs who have worked hard for their family homes and have no choice but to drive to essential services, unlike city dwellers with access to public transport. This is why I always say that new housing development must be delivered in urban centres, where it is needed most and where the 24/7 transport connections are. Too much is being taxed out of West Sussex to spend elsewhere in the country, and with no local benefits felt at all.”