With Rachel Reeves having used her pre budget speech to outline to need for forthcoming tax rises, Janet Finch-Saunders member of Senedd for Aberconwy has criticised the Chancellor for failing to recognise the damage she caused to the economy during her first budget a year ago.
Business confidence has been hit hard due to her changes to national insurance and the assault on both the agricultural sector and family businesses.
The government's official forecaster, the OBR, is expected to downgrade its productivity forecasts, meaning the chancellor could face a £20bn gap in meeting her tax and spending rules.
Janet said:
“If the chancellor wants to improve the state of public finances further taxation is not the answer.
During her long winded speech and interesting interpretation of history, she neglected to acknowledge the serious problems caused by her first budget. Her cuts to winter fuel payments were a disaster, her welfare reform was a disaster and her tax rises for businesses are a disaster too.
The best step the UK Government and Welsh Government can now take is to tackle head on all policies that are hampering economic growth, including changes to national insurance, business rates, and over burdensome regulations in several sectors. As it stands we in Wales are likely heading towards tax increases in the upcoming budget from the UK Labour Government and tax increases by local authorities due to the unfair Welsh Government settlements.”
