Labour ‘fudges’ their first Budget – London Business News | Londonlovesbusiness.com

The Chancellor Rachel Reeves has unveiled her financial plans for Britain’s economy in the first Labour budget in 14 years. Government borrowing is set to reach £127 billion, and tax revenue hikes of £40 billion.

Mike Salem, the UK Country Associate for the Consumer Choice Center (CCC), has reacted to Reeves’ Budget.

Salem said, “Reducing the price of a pint by 1p does not show you’re remotely in touch with consumers. It’s like a bad joke, one that does not consider the struggles we’ve had with soaring costs of living in recent years.”

Salem also criticised increasing tax on non-draught alcoholic drinks and soft drinks.

Additionally, the Chancellor introduced a tax on liquid vape bottles, a measure which sends the wrong message to smokers trying to quit. As a result, Reeves had to introduce in tandem a one-off increase on the tobacco levy to ensure vaping is still cheaper than smoking. This comes on top of increasing tax on tobacco by 2% above inflation, 10% for hand-rolling tobacco, which punishes the worse off who smoke.

“Reeves wants to punish consumers for spending their own money, and these taxes were never really about public health or nudging, but a cash grab from hard-working British people.”

On economic policy, Salem expressed concerns about increasing Capital Gains Tax, which leaves young and old consumers worse off financially. This is not aided by making it more expensive to hire people through increasing National Insurance contributions of employers, discouraging hiring and cutting off sources of income for our consumers.

Salem concluded by warning that today’s budget will lower projected and actual economic growth, and leaves UK consumers poorer to their international counterparts.