Jesmond residents are calling for action on rising rents and living costs ahead of Chancellor John Healey’s Budget tomorrow (Wednesday, October 28th).

The Chancellor will set out the government’s tax and spending plans in the House of Commons at around 12.30pm tomorrow, with households looking for measures to ease financial pressures. Local residents told JesmondLocal they would welcome restrictions on rental prices and help with the cost of everyday essentials.

Chalmers said that “when it comes to paying my rent or even my groceries, it’s just very stressful.” She said that putting a cap on the cost of student housing would help her situation, as she feels landlords are pushing up student prices simply “because they know people obviously need a place to live”.

Chalmers also said that interest-free alternatives outside of student loans would help. She feels that “people are afraid to apply for higher student loan amounts” because of “how long it takes” to pay them off. 

Other residents shared similar concerns, includin Leslie Nicholson, who said that “a lot more control needs to be made over the private rental sector.” 

She said: “I understand for young people it’s an absolute nightmare renting property, when I walk past the rental places I think my God, how can anyone afford that?” Nicholson also raised concerns about food prices, describing the cost of food as “going up through the roof.” She suggested that the government should remove fuel tax after hearing from a friend who pays £175 to fill his diesel van.

However, she acknowledged the difficult decisions facing the government. “The country’s broke isn’t it. So, things have got to be paid for somehow.”

The Chancellor is under pressure to ease living costs while keeping government borrowing under control. The government has pledged not to increase the main rates of income tax, National Insurance or VAT, but speculation continues about other possible tax changes.

Measures affecting household energy bills, fuel duty and support for first-time buyers are among those being discussed ahead of the Budget. The government has already temporarily removed VAT from domestic electricity bills, while the Chancellor could announce further support for households facing high energy costs.

There is also speculation that the government could extend the existing 5p-per-litre cut in fuel duty, which is currently due to expire at the end of December.

Further details are expected about the government’s Your First Home scheme, which is intended to help first-time buyers purchase new-build homes with smaller deposits. Meanwhile, changes to the minimum wage and income tax thresholds could affect how much money working households have available to spend.

The Renters’ Rights Act, introduced in May this year, also means landlords can only increase rent once a year, and not within the first 12 months of a tenancy.

Accountant BDO has predicted a possible VAT reduction on domestic gas and hospitality for this year’s budget. It also suggested that income tax personal allowance may increase, an idea Prime Minister Andy Burnham has “floated” previously.