A York MP has said that Thursday’s budget will drag the UK further into recession.

The criticism from Rachael Maskell MP comes as City of York Council leader Coun Keith Aspen accused the government of ‘passing the buck’ on tax rises.

Ms Maskell said with interest rates and inflation rising, “the economy is spiralling into a very bleak place.

The Labour MP said falling real wages and predictions of 500,000 more unemployed were all “due to the political choices of this Tory Government.”

People also faced a punishing winter and promised higher benefits and pensions rises won’t happen until Spring.

The York Central MP continued: “While other countries are recovering, our Government has set us on a path to a long, deep and politically manufactured recession.  Blaming global factors is a clever ploy, but people are not fooled and it won’t wash.” 

“We have seen nothing but economic incompetence and illiteracy coming out of Downing Street.”

The MP called for Labour back in office and a ‘reset’ with reversals of outstanding tax cuts, closing non-dom loopholes, a wealth tax, and she sought a £30bn green investment boost.

Councile leader Keith Aspen said government mismanagement has caused “the worst cost-of-living crisis in decades.”

Short-term help for energy bills and benefit rises were welcome, he said, but they would not make up for tax rises and "eye-watering" spending cuts which would harm public services.

“The ‘extra funding’ announced by the Chancellor for social care is nothing more than smoke and mirrors – made up of forcing councils to raise regressive and unfair council tax by 5% to pay for government incompetence.

Earlier, Chancellor Jeremy Hunt said real Household Disposable Income per person is set to fall more than 7% over next two years.

Support for energy bills would be extended from April, with the average annual energy bill increasing from £2500 to £3000. Further support payments would go to the elderly and those on low incomes.

Local councils will also receive a £1bn to help those who “may fall through the cracks” of the various support systems.

Chancellor Hunt revealed what he called a record increase in health and social care budgets of £8bn over the next two years, including up to £2.8bn for adult social care in 2023-2024 and £4.7bn the year after.

Overall, Chancellor Hunt announced a £55bn “plan for stability”, half of which would be funded by tax rises, the rest from spending cuts.

Mr Hunt confirmed the UK was "now in recession." His plan would bring "shallower downturn" as "difficult decisions" were needed to "rebuild our economy".

Meanwhile, Thirsk and Malton MP Kevin Hollinrake, welcomed extra help for firms paying business rates, and a variety of reliefs on investment, reflecting his new role as a junior business minister.

He added: An estimated 99 per cent of UK businesses will be supported to invest and will have confidence that they can do so without future changes (unless we get a change of govt).”