OVER the course of the last few years, a lazy and inaccurate accusation has been that Labour is no longer the party of working people.

Chancellor Rachel Reeves’ budget last week well and truly buried that idea. With the much-trailed focus on those with the broadest shoulders carrying the heaviest burden, there was a raft of support for working families and in particular those on the lowest wages.

Whilst the headline increase to the National Living Wage of £12.21 was really welcomed and will mean an uplift for over three-million workers, I was particularly delighted with the big uplifts in the young persons and apprentice rates to £10 and £7.55 respectively. In my view, it is completely wrong to give two workers different wages for doing exactly the same job, purely on the basis of the age.

With over 30 years of business experiences, I understand well the challenges that employers will face as a result of these changes and changes to Employers National insurance, but increasing the wages of the lowest paid workers makes good economic sense. Unlike wealthier workers who may well save any additional income, lower paid workers tend to spend additional income and invariably spend it locally. That means more money going into our high streets, shops, bars and local facilities.

But there were other measures announced in the budget that will help working families. The Chancellor announced a big increase of £2.3-billion to the core schools’ budget. The government is investing in both educational facilities and staff. This additional funding will support hiring more teachers, improving classroom environments, and ensuring per-pupil spending rises in real terms.

Additionally, £1.4 billion is allocated to the School Rebuilding Programme to upgrade outdated facilities and create safer learning environments for children. This will mean happier, healthier, more focussed children. The health budget too will see a massive increase - £22.6-billion to support the NHS, focusing on reducing waiting times, enhancing patient care, and alleviating pressure on healthcare staff. This funding will help the NHS deliver 40,000 additional elective appointments each week, addressing ongoing healthcare demands.

But as was made very clear by chief secretary to the Treasury, Darren Jones, this increase in NHS spending must come in parallel with the NHS reforms laid out in the Darzi report. We’re not just chucking good money after bad – the reforms must and will come too.

Why is this NHS investment good for working families? Because a healthy workforce is a more productive one. I cannot understand the basic economic argument that does not prioritise the health and wellbeing of our workforce. This was a massive tax raising budget – frankly one that we didn’t think we’d have to make this early in the parliament and one that the Chancellor Rachel Reeves has made very clear, we will not be repeating. But it is one that sets us back on the path of economic and social recovery, with working families at its very heart.

Labour is and has always been the party of working people.

Perran Moon

Labour MP for Camborne and Redruth