Labour’s budget of broken promises hits working families with record tax hikes says Cllr Zack Ali

The Autumn Budget, announced by Labour’s Chancellor Rachel Reeves, raises taxes to unprecedented levels, costing each working family £2,237 more annually, and brings in a staggering £40 billion in new taxes—despite Labour’s repeated pledges not to increase the tax burden on ordinary working people.

During the election campaign, Labour assured the public that taxes on working people would remain untouched. They pledged not to raise National Insurance, income tax, or VAT.

Yet, with this budget, Labour has increased employers National Insurance and the independent Institute of Fiscal Studies has said it will be paid for by workers. This change alone represents a £25 billion tax raid on working families and small businesses, disproportionately impacting lower-paid workers.

The Independent Office for Budget Responsibility (OBR) has forecast that Labour’s employer National Insurance increase will reduce job opportunities and hit wages. The OBR estimates a reduction equivalent to 50,000 jobs, and the Institute for Fiscal Studies (IFS) warns that these increases will disproportionately impact lower-income families.

Alongside tax hikes, Labour’s budget includes a dramatic change to fiscal rules, allowing for unprecedented borrowing. This change, called “fiscal fiddling” by the IFS, means Labour has effectively moved the goalposts, using altered fiscal standards to justify billions more in borrowing. Economists are concerned that this borrowing surge will drive up interest rates and keep inflation high, adding even more pressure on household budgets.

Labour’s budget places Britain’s tax burden at 38.2% of GDP by 2028. This tax-and-spend agenda, combined with additional regulations on businesses, is expected to suppress private investment and stymie growth across the economy.

Commenting, Cllr Zack Ali, Conservative spokesman for Crawley said: “Labour’s budget is a devastating betrayal of trust. They promised to protect working people, yet they’ve delivered the highest tax burden in history.

"Ordinary families in Crawley now face an extra £2,237 a year in costs, while our local businesses, farmers, and job creators are left to pay the price of Labour’s broken promises. This budget is proof that Labour cannot be trusted to act in the interests of hard-working Britons.”