Mid Wales politicians have reacted to the budget

Mid Wales politicians have reacted to the Budget announcement.

Chancellor Rachel Reeves delivered Labour’s first Budget since 2010 earlier.

She announced tax rises worth £40 billion, which she says will rebuild public services and stabilise the public finances.

One of the most controversial announcements in the Budget was that employers' National Insurance contributions will rise.

Companies will pay National Insurance at 15 per cent on salaries above £5,000 from April - up from 13.8 per cent on salaries above £9,100.

This will raise an additional £25 billion a year.

Brecon and Radnorshire MS James Evans called it “an attack on small and medium businesses” and said it “could spell the end of the family farm”.

He said; “This is a tax raid of £40billion and an attack on small and medium businesses.  

“It is these businesses that will have to find the money to pay for the increased national minimum wage, the increased national insurance contributions, at a time when many businesses are struggling to make a profit.  

“Labour say they are not taxing workers – but these businesses will either have to put up prices or cut back of staff – how on earth does the Chancellor think this will not impact all of us.  Hospitality businesses will be some of the hardest hit and local businesses tell me this budget will push them over the cliff edge.

Brecon, Radnor and Cwm Tawe MP David Chadwick said the Budget “punishes small businesses” and called it “a disaster” for family farms.

The Welsh Liberal Democrat Deputy Leader added: “This budget fails to offer an ambitious vision for Wales that would mark a long-term investment in its future, it punishes small businesses and will be a disaster for family farms. 

“Labour has failed to deliver the billions owed to Wales from HS2, yet constituents like mine are facing deep cuts in their rail services.

“Meanwhile, the Chancellor has chosen to increase taxation for the small businesses that are the lifeblood of the Welsh economy instead of taking aim at the enormous profits of the banks, oil and gas giants and big tech.

Both politicians took issue with forthcoming changes to inheritance tax relief in relation to agricultural assets.

The Chancellor said she will extend the inheritance tax threshold freeze for a further two years to 2030.

From April 2026, the first £1 million of combined business and agricultural assets will continue to attract no inheritance tax at all, but for assets over £1 million, inheritance tax will apply with 50 per cent relief, at an effective rate of 20 per cent.

Mr Evans said; “The changes to Inheritance Tax relief for agriculture is huge for our area.  It does not have to be a large farm to get over the £1million threshold.  Rachel Reeves said she wants to protect small family farms but this policy does just the opposite and I fear this announcement could spell the end of the family farm.”

Mr Chadwick added; “The Chancellors Family Farm Tax risks being a death knell for local farmers who have already faced attacks on their livelihoods by the Welsh Labour Government, who have shown time and time again they have no understanding of the rural economy or the work that goes into making sure the public have food on their plates.”