Labour has revealed that they were not truthful with the British public, presenting a Budget filled with broken promises and marked by significant tax increases and heavy borrowing.
Labour had pledged not to raise taxes on working people, yet they’ve imposed a £25 billion tax hike by raising National Insurance, pushing the tax burden to an unprecedented level in the nation’s history. The Office Of Budget Responsibility say 76% of the NI hike will come out of workers' wages. So bad for business, bad for workers, bad for growth.
The application of 20% Inheritance Tax to family businesses and family farms for the first time will be devastating for local communities in Thirsk and Malton as it will see businesses closing to pay taxes rather than being passed from one generation to the next.
Despite promising not to increase borrowing, Labour has raised borrowing by billions each year of this Parliament. According to the OBR this will drive up inflation and mortgage rates, impacting working families.
Furthermore, as admitted by the Chancellor, they have “fiddled the figures” by abandoning fiscal rules, allowing debt to grow unchecked.
The core reality of this Budget is clear: Keir Starmer and Rachel Reeves always intended to raise taxes, allow borrowing to surge, and break their promises—they simply lacked the courage to admit it to the British public before the election.
