As budget nears, faith in government ‘on a knife edge’ – even in Preston, a Labour stronghold
The dramatic iron canopy over Preston Market has been sheltering shoppers for nearly 150 years.
Even inside the stylish indoor market, which opened six years ago, the trading history of this Lancashire city is palpable.
Old posters remember the Christmas markets of 1902.
Derek Cheetham says the UK is ‘on a knife edge’
“A lot of people have been coming here for a long time,” says Derek Cheetham, owner of the market’s Cherry Pie Coffee & Co.
“It is a religious thing for them to do, to go to Preston Market.”
They have seen plenty of budgets come and go here but, in a seat that has been safe Labour territory since the end of the Second World War, the party’s first budget in recent memory is a significant moment.
“I think it’ll make or break them,” says Valerie Sergeant, owner of Wise Buys Hair and Beauty, adding, “they have to help the middle classes.”
For traders and shoppers alike, the government’s controversial decision to change the winter fuel allowance for pensioners has made many wary of what new economic pain might lie ahead.
“I think we’re on a bit of a knife edge,” Mr Cheetham said.
Preston Market
“They’ve obviously got issues to solve, I think everybody knew that. They’ve tried to make it sound worse than we all thought it might be, probably so that when they make tough decisions, they’ve got a good excuse for it. I don’t think everyone’s buying that, to be honest.”
Preston Market has been serving shoppers for nearly 150 years
Like many of the small business owners in the market, he is concerned about the prospect of an increase in national insurance contributions for employers and changes to pensions.
“Most small businesses are not making huge amounts of money. Every time the government puts another cost implication in there the only people it hurts generally is the workers.”
Salman Ahmed, who switched from selling fashion to joining his brother’s Indian food stall Chacha’s, agrees.
Valerie Sergeant says ministers ‘have to help the middle classes’
“We’re not struggling, we’re coping, we’re alright, we pay the bills and take some money out for us. This budget looks like it is going to be financially a burden on the employers and this is going to be more pressure and we’ll feel it.”
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Why are businesses nervous about the budget?
By the Halloween display, a queue forms for the nearby bakery.
Some people offer a brusque “no comment” when asked about what they want from the budget.
They are similarly dismissive of Labour’s first months in office.
“It is heartbreaking to see that old fella there saving up his 1p and 2p coins so he can buy his grandson something for Christmas. He’s going to get nowt in the budget,” says one frustrated woman.
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David Maudsley, owner of Sheridan’s Bags and Bags, said: “I think the country is in limbo at the moment.
“Can it be as bad as they have really portrayed? Hopefully not. But there’s no light at the end of the tunnel until after the budget.
“In a nutshell, people are saying, ‘this is not what we voted for’. A number of people have said exactly the same to me. We didn’t vote for this and I’m not sure what we were voting for exactly.”
At Bossy Boots shoe stall, Peter Walls is even more blunt. Since the election, he says, the country “has been a mess”.
As for the budget, he says, “there’s a lot of fear, there’s a lot of worry out there.”
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In this staunchly Labour area there are plenty who want to give the government time on the economy but, even here, the challenges of everyday life mean patience is short.
In his 70s, Adrian Livesey is still running the butchers he started four decades ago. I asked him if the people of Preston still have faith in the Labour government.
“They have but it is waning. We get people in here all the time saying ‘hey, it’s not took them long, has it? It’s not took them long to go back on their pledges’.”
UK drivers are “confused” by the country’s electric car transition, ministers are being warned.
Although most drivers are not hostile towards electric vehicles (EVs), many are confused about what changes are coming and when, according to new research from the AA.
In a survey of more than 14,000 AA members, 7% thought the government was banning the sale of used petrol and diesel cars.
Around a third thought manual EVs exist, despite them all being automatic.
More than one in five said they would never buy an EV.
The government’s plan for increasing the number of electric vehicles being driven in the UK focuses heavily on increasing the supply of the vehicles.
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What you can do to reach net zero
In 2024, at least 22% of new cars and 10% of new vans sold by each manufacturer in the UK had to be zero-emission, which generally means pure electric.
Each year, those percentages will rise, reaching 80% of new cars and 70% of new vans in 2030.
Manufacturers will face fines of £15,000 per vehicle if electric vehicle sales fall short of 28% of total production this year.
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By 2035, all new cars and vans will be required to be fully zero emission, according to the Department for Transport.
Second-hand diesel and petrol cars will still be allowed to be sold after this date, and their fuel will still be available.
There are more EVs – but will people buy them?
In February, 25% of new cars were powered purely by battery and in January, they made up 21% of all new cars registered in the UK.
But despite the growth of electric sales, manufacturers continue to warn that the market will not support the growth required to hit government EV targets, and called for consumer incentives and the extension of tax breaks.
The AA suggested the government’s plan focuses on “supply but does little to encourage demand for EVs”.
It called on ministers to co-ordinate a public awareness campaign alongside the motoring industry which directly targets drivers who doubt the viability of EVs.
“Our message to government is more needs to be done to make EVs accessible for everyone,” said Jakob Pfaudler, AA chief executive.
Which? head of consumer rights Sue Davis said: “When it comes to making sustainable choices such as switching to an electric car, our research shows that people are often held back by high costs, complex choices or uncertainty.
“The government needs to provide the right information on electric vehicles and other sustainable choices so that people have the confidence to switch.”
A Department for Transport spokesperson said: “We’re investing over £2.3bn to help industry and consumers make a supported switch to EVs.
“This includes installing a public charge point every 28 minutes, keeping EV incentives in the company car tax regime to 2030, and extending 100% first-year allowances for zero-emission cars for another year.
“Second-hand EVs are also becoming cheaper than ever, with one in three available under £20,000 and 21 brand new models available for less than £30,000.
“We’re seeing growing consumer confidence as a result.”
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