On Wednesday, the Chancellor delivered a budget which raised taxes on working people, unleashed a borrowing spree and changed the fiscal rules.
As a result, the tax burden will rise to its highest ever level, in cash terms, in our country’s history. The OBR confirmed that Labour’s Budget has taken the tax burden to 38.2 per cent of GDP in 2028-29, exceeding the record high set in 1948 of 37.21 . Economic growth has been revised down. In 2026, the OBR said growth would be 1.8 per cent, down from 2 per cent, and 1.5 per cent in 2027, down from 1.8 per cent as predicted in March of this year. Working people will be hit with a £25 billion tax raise. By raising National Insurance contributions for employers, Labour have unleashed a £25 billion business tax raid which the OBR say will result in lower wages. Living standards will be lower. The OBR said, ‘Compared to our March forecast, the level of RHDI per person is just over two per cent higher at the start of the forecast due to data revisions, but 1.25 per cent lower by the start of 2029. The bulk of this difference (around 85 per cent) is explained by policies announced in this Budget’.
In addition to this, Rachel Reeves confirmed that VAT on private school fees would be levied from January 2025 and business rate relief would end for private schools from April 2025. The Chancellor also betrayed farming families by reducing Inheritance Tax relief on combined agricultural and business assets after the first £1 million from 100 per cent to 50 per cent and finally, the Budget gave the green light to East West Rail. All three issues are of significant concern to Bedfordshire residents.
On private schools, Richard Fuller MP said:
There was no reprieve in this punishment budget for Bedfordshire families who want their children educated privately. We know local state secondary schools are full.
We know that the new school planned to provide more schools places from 2028 has now been put on hold by the Labour Government.
Now we know Labour’s spiteful tax on education will go ahead in January AND Labour will press ahead with removing business rates relief in April.
This is a hateful ideological attack on local education. Pure socialist dogma that is timed to do maximum damage to local children by forcing them out of their school mid year and failing to ensure school places are available
Truly shameful.
On farming, Richard added:
Rachel Reeves has destroyed the ability for farmers to pass family farms to their children by scrapping agricultural property relief (APR) for thousands of farmers. This will reduce the amount of land farmed, undermine our food security, increase food prices and end the continuity of generations of stewardship.
Labour has betrayed farmers by previously saying they wouldn’t change APR. Another promise broken.
And on East West Rail, Richard said:
During the election I warned that East West Rail was not a railway project, it was a housing project.
I warned that a Labour government would use East West Rail to concrete over our Bedfordshire countryside and add even more pressure to local services.
Well here in the first Labour budget we can see in black and white those worst fears realised.
Former Lib Dem Mayor Dave Hodgson put rural North Bedfordshire to the sword by agreeing this hugely damaging route. Rachel Reeves and Angela Rayner will be happy to finish the job.
