Luton’s two Labour MPs have welcomed the government’s Budget, highlighting a £100 payment towards energy costs for tens of thousands of households across their constituencies, an increase in the minimum wage and measures aimed at supporting local businesses.
Sarah Owen, MP for Luton North, said the Budget would offer “more breathing space” for residents, while Rachel Hopkins, MP for Luton South and South Bedfordshire, said it would provide support with the cost of living and “fresh hope for the future”.
Ms Hopkins said 46,400 households in her constituency would benefit from the £100 energy payment, while Ms Owen said 38,000 households in Luton North were expected to receive it.
The payment is intended to help households with energy costs, with properties in council tax bands A to D eligible for the support. The government has said the scheme will benefit up to 20 million households across England, with equivalent support elsewhere in the UK.
Ms Owen said online: “This budget will give more breathing space to people across Luton North. The rise in the minimum wage will help thousands with the cost of living. 38,000 households in Luton North will benefit from a grant for their bills. Drivers will see fuel duty again frozen. The permanent rise in mileage rates will help the many private hire drivers who work in Luton.”
The National Living Wage for workers aged 21 and over will rise by 3.9 per cent, from £12.71 to £13.21 an hour, from April 2027. The government estimates that a full-time worker on the rate will receive an additional £910 in gross annual earnings.
The Budget also extends the temporary VAT cut on electricity bills until July 2027 and sets out plans to remove gas standing charges. The government has also extended the five-pence cut in fuel duty for a further six months and delayed a planned increase until July 2027.
Ms Hopkins said the measures would help working people while supporting households and businesses through higher costs.
In a social media post setting out what the Budget meant for Luton South and South Bedfordshire, she said: “This is a budget for working people, with breathing space on the cost of living now and fresh hope for the future, delivered by this Labour Government.”
She also highlighted plans to increase total investment in UK council housing to £40 billion and extend the government’s commitment to ending rough sleeping beyond this winter to the end of the current Parliament.
The Budget includes further measures intended to reduce costs for businesses and support high streets. The threshold for Small Business Rate Relief for retail, hospitality and leisure businesses will rise from £12,000 to £18,000, with the government expecting a further 70,000 businesses nationally to pay no business rates. Additional support is also being provided for pubs, social clubs and music venues.
Ms Hopkins listed the business rates changes among the measures she believed would benefit the area, alongside the wage increase and help with energy bills.
Ms Owen also highlighted the potential impact on Luton’s businesses, saying the Budget would help create jobs and encourage investment.
She said: “Under Labour, the UK is the fastest-growing economy in the G7. But I know that for many in Luton North it hasn’t felt like it as costs from the Iran war and global instability drive up costs.”
The government’s Budget document says the UK recorded joint-fastest GDP growth among G7 countries in the first half of 2026, while acknowledging that the conflict in the Middle East has put pressure on the economic outlook and household finances.
Eligible energy-intensive manufacturing businesses will receive a 20 to 25 per cent discount on electricity costs through the British Industrial Competitiveness Scheme, due to begin in April 2027.
Ms Owen said: “By tackling the cost of living, supporting businesses to create growth, and making the big reforms needed in housing, energy and public services, this government will deliver for people in Luton North. Cuts to business rates for our brilliant retail, hospitality and leisure businesses and 25% off energy bills for eligible industrial businesses will also create jobs and growth in our town.”
Another measure highlighted by Ms Owen is a change to tax-free mileage rates for people who use their own vehicles for work. The rate for the first 10,000 business miles has increased from 45p to 55p per mile for 2026-27, and that increase will now be made permanent. From April 2027, the rate for business mileage above 10,000 miles will rise from 25p to 35p per mile.
The change could benefit private hire drivers and other self-employed people who use their vehicles for work, although the tax arrangements depend on individual circumstances.
Ms Owen also welcomed measures on parental pay and tackling misogyny, drawing on her previous work on the House of Commons Women and Equalities Committee.
Eligible self-employed fathers, partners and adopters will be able to receive parental pay for the first time under a new allowance due to be introduced in April 2029. The government expects it to benefit more than 150,000 parents each year.
A new £15 million Misogyny Prevention Fund will support programmes intended to challenge misogynistic attitudes and improve the safety and opportunities of women and girls.
Ms Owen said: “Finally, after my work on the Women and Equalities Committee, it is so good to see paternity leave rights extended for self-employed dads, and £15m promised to the Misogyny Prevention Fund.
“These changes will make a difference now, and for years to come in Luton North.”
Both MPs presented the Budget as a response to pressures on household finances, alongside longer-term measures on housing, energy costs and economic growth.
Be the first to comment