Today’s budget, delivered by Labour’s Chancellor Rachel Reeves, unveils a series of staggering broken promises that will deeply impact working people, businesses, farms and other key sectors of our economy. This so-called budget for change is a budget of broken promises, spiralling debt, and an unprecedented tax burden on those least able to shoulder it.
This budget proves that Labour has abandoned their promises to the British people, with sweeping tax hikes and borrowing increases that they vowed never to implement. With these measures, they’ve not only pushed up spending and debt but have forced working people, small businesses, and our farmers to pay the price. This isn’t about fairness or stability—it’s about political posturing, and Britain will suffer for it.
Labour’s budget includes a £25 billion increase in National Insurance contributions, breaking their commitment to protect working people from tax hikes and not to increase National Insurance. By pushing National Insurance up to 15% and lowering the threshold for employers, Labour is directly hitting lower-paid workers hardest—a clear betrayal of promises made at the election. As a result, small businesses will see their margins squeezed further, while many employers will have less money to invest and less money to pay workers which means lower wage increases or even fewer people employed. Furthermore, the significant reduction in retail, hospitality and leisure business rates relief will add to the costs of these businesses which are still recovering from the pandemic.
I welcome some of the elements of the budget including extending tax reliefs to the creative industries and the freeze on fuel duty – both policies that we advocated when in government. I also welcome the commitment to provide money to support VJ and VE day commemorations. But overall this is a terrible budget that will hit the pockets of hard working people in my constituency and across the country.”
Higher Borrowing, Higher Debt, Higher Taxes
The Office for Budget Responsibility (OBR) has confirmed that Labour’s policies will increase borrowing by billions each year, worsening inflation and pushing up interest rates, which will make mortgages and loans more costly for families. Far from balancing the books, this budget reflects an economic mismanagement that will leave future generations saddled with debt.
Impacts on Key Sectors: Agriculture and Small Business
In a devastating move for farmers and small businesses, Labour’s changes to inheritance tax will make it harder for families to pass down farms to the next generation, risking the future of our agricultural industry. By reducing agricultural relief, Labour is pushing yet another tax burden onto the very people who put food on British tables.
Impact on Growth and Investment
In addition to breaking promises on taxes, Labour’s approach undermines the foundations of economic growth. With increased Capital Gains Tax and employer National Insurance contributions, businesses face higher costs, discouraging investment at a time when we desperately need to foster innovation and jobs. The OBR forecasts that, as a result, business investment and growth will decline in coming years—another betrayal of Labour’s election pledges to boost the economy.
Key Broken Promises and Their Consequences:
• Record-Breaking Tax Burden: By 2028-29, Labour’s budget will raise taxes to 38.2% of GDP, the highest level in the UK’s history, hitting working families and businesses hard.
• Inflation and Interest Rates: The OBR estimates that Labour’s policies will push up inflation and interest rates, making life even more expensive for families already struggling with the cost of living.
• A Jobs Tax by Any Other Name: Labour’s increase in employer National Insurance will stifle job creation and hurt small businesses, disproportionately impacting those employing lower-wage workers.
The Labour Government must be held to account for these damaging decisions. While they promised a better economy and stronger support for working people, today’s budget shows their true priorities: higher taxes, reckless borrowing, and broken promises. This isn’t the responsible, honest leadership the British people were promised—it’s the opposite.
