After weeks of Labour’s chaotic policy floating and tax-rise briefings, which have already damaged the economy, the Chancellor finally delivered her Budget today. Last year, Rachel Reeves hit the economy with higher taxes and refused to get welfare spending under control. Now this year, there is so much chaos within this failing Labour Government that the Budget was leaked before the Chancellor delivered it.
£505m for Wales through the Barnett Formula over the next 3 years – yet nothing about HS2 consequentials, the money that Wales was short-changed by as a result of the increase in employer national insurance last year or the £1 billion the UK Conservative Government promised for electrifying the North Wales mainline,
This manifesto breaking Budget includes £26bn of tax rises for working people and families that has increased the tax burden to a record high. Labour’s Budget includes:
- Income tax thresholds frozen until 2030/31 – three years longer than planned, dragging more workers into higher taxes.
- Lower growth forecast – GDP expected to grow 0.3pts slower than projected in March.
- Two-child benefit cap scrapped – estimated to cost £3bn by 2029/30 which will drive the welfare bill even higher.
- Welfare spending is continuing to rise by an extra £11 billion.
- New EV mileage tax confirmed – from April 2028, charged at around half the petrol fuel duty rate.
- Dividends, property and savings income tax up by 2%
- Gambling taxes worth £1.1 billion
- A high value council tax surcharge on properties worth over £2m, raising £0.4bn.
- Charging National Insurance on salary sacrifice for pensions.
- A sugar tax on lattes and milkshakes
- The OBR expects inflation to reach 3.5% for this year – higher than the forecaster estimated in March when it predicted a 3.2%
- Tax Burden will hit 38.3% of GDP by 2030-31 – an all-time high.
- Spending is £179 billion higher in 2028/29 than the forecast the Chancellor inherited from the UK Conservative Government.
- Digital ID set to cost £1.8 billion.
Working people hit again. Pensioners hit again. Savers hit again. No one is safe, this Budget is a nightmare before Christmas for hardworking taxpayers.
Commenting, Welsh Conservative Shadow Cabinet Secretary for Finance, Sam Rowlands MS, said:
“Labour’s claim that they wouldn’t raise taxes on working people has been exposed for the second Budget in a row, Labour seem to relish spending other people’s money.
“Wales and the UK deserve better than a government that leaks its own Budget and punishes the very people who keep our economy running. With our Golden Economic Rule and £47bn savings plan, the Conservatives would control spending, back business and cut taxes to get Britain working again. Under Labour, we just keep paying more.
“Labour Ministers in Cardiff Bay must finally stand up for Wales instead of letting their Westminster colleagues raid people’s pockets. With even Scottish MPs getting a mention in the Budget, it’s clear Wales’ First Minister hasn’t lifted a finger for Wales.”
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