Chancellor Rachel Reeves has been accused of “duping the public” with her recent Budget announcement after announcing a record tax burden on the working people.
Former Conservative Minister Michelle Donelan criticised the Labour government’s approach, claiming they haven’t changed “one iota” despite their election promises.
Speaking on GB News, Donelan argued that Labour still believes in borrowing and taxing to achieve growth.
She accused the government of putting “ideology before economic literacy and before common sense”.
Michelle Donelan claimed Labour have put ‘ideology before common sense’
GB News / PA
Despite Reeves’ promise that “working people will not see higher taxes in their payslips”, the Office for Budget Responsibility suggests the impact on businesses will have a detrimental knock-on effect on employees.
Donelan specifically criticised Reeves for changing the way debt is modelled and calculated.
She quoted Reeves as previously saying this would be “fiddling the figures”, yet claimed the Chancellor had done exactly that in the Budget.
She fumed: “[Rachel Reeves] has duped the public in a number of ways, because one of the things that she went on the record saying is that we will not alter the way that debt is modelled and calculated, and she said that it will be fiddling the figures.
“That’s a direct quote from her. And yet, today, she’s done that. So it makes you question everything that they’re saying.”
Donelan delivered her verdict on the tax-hiking Budget, adding: “Fundamentally, what this Budget shows is that Labour haven’t changed one iota despite what they promised in the election.
“They still believe you can borrow and tax your way to growth. They’re a leopard that hasn’t changed their spots. They’ve put ideology before economic literacy and before common sense.”
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Chancellor of the Exchequer Rachel Reeves delivered her Budget to the House of Commons this afternoonPA
The former Conservative Minister also highlighted the economic situation inherited by the current government.
She explained: “This government inherited the fastest growing economy in the G7. We had lower borrowing than America, than France, than Japan, then Italy. Inflation has gone back down to two per cent.”
Donelan argued that these facts shouldn’t be overlooked when assessing the new Budget’s impact.
She expressed concern about the government’s approach to businesses and investments, stating: “We should be supporting entrepreneurialism.”
Michelle Donelan accused Reeves of ‘duping the public’ with Labour’s Budget
GB News
The Budget introduces significant changes to National Insurance (NI) contributions. Employers’ NI has been increased by 1.2 percentage points to 15 per cent, up from 13.8 per cent.
The Office for Budget Responsibility (OBR) forecasts that around 60 per cent of these increased costs will be passed on to employees in the short term. By 2026/2027, 76 per cent of workers could face lower real wages as a result.
The OBR also predicts that the Budget will lower the overall employment rate by 0.1 per cent in the long run, potentially reducing labour supply and demand by about 50,000 average hours.
By 2030, real household disposable income is projected to be £300 lower following the Budget, further impacting working people.
