Budget 2025: Rises only needed to save Reeves' job at the expense of working people
After all the kite flying and leaks we knew it was going to be bad but it was worse, it had no vision for the future apart from state dependance and yes, she lied to the House.
A Prelude to Chaos
Let’s be honest, the run-up to this second budget has been another utter disaster, just like the first in 2024.
Last year, the Rose Garden shambles where Keir Starmer broadcast to the world that the situation was much worse than he feared, was followed by weeks of speculation, fear, and rumour. The economy plummeted, personal spending was rolled back, and consumer confidence was shattered.
This time was no different. We had to endure numerous leaks, denials, and kite flying of possible personal tax increases, wealth taxes and exit taxes. This was all to gauge public and market reaction, but this very act has done untold damage to consumer and business confidence yet again. I am still not sure if it’s pure incompetence, no one knew what to do, or just deliberate sabotage of this country; it has to be one of these.
But it got even worse on the very morning of the Budget, when the Office for Budget Responsibility (OBR) released their response before a word had been spoken at the despatch box. Why is it this bad?
The Economic Doom Loop: Growth Avoided, Promises Broken
The immediate economic outlook is grim according to many economists and business owners, despite Starmer & Co saying they are going to ‘legislate for growth’, a paradox in itself.
The highly respected Institute for Fiscal Studies (IFS) delivered a damning assessment of this budget, suggesting key measures that could have driven economic growth, previously touted as the Chancellor’s ‘number one priority,’ were all avoided. In a similar vein, the OBR poured cold water on the growth prospects of the new package, stating that none of the dozens of measures announced would have a material effect on growth.
The reality of Labour policies and the 2024 Budget, is that the jobs market has basically collapsed. According to the government’s own figures, the UK has seen up to 48,000 people a month losing their jobs and circa 250,000 less on payroll since Labour came to power. GDP growth is predicted at a meagre 0.1% per quarter, which is basically nothing.
This lack of movement is directly impacting key sectors, with circa 84,000 jobs already lost in the hospitality sector due to a combination of higher business costs and reduced consumer disposable income. The combination of National Insurance tax hikes, rising minimum wage, energy bill increases, and new employment laws are making it nearly impossible for many businesses to survive, and more increases are on the way, with predicted closures of more business in that sector.
It’s Basic Economics. The government should be deregulating if it genuinely wants to drive the economy forward. It cannot add regulation, more costs, and expect business to thrive, employ more people, and generate greater tax revenue.
The Theft from Our Kids: A Socially Corrupt Budget
The 2024 budget delivered nothing to help grow the economy, only tax, borrow, and spend. This budget continues that reckless course.
This Labour government has now overspent in excess of £100bn this year so far, and it’s going to continue. These terrifying borrowing figures equate to approximately £370 million a day, that’s roughly double the overspending of the previous Conservative government - which didn’t have a great record either.
All this overspend is going on the government (i.e. taxpayers) credit card, paying circa £10bn a month in debt interest alone. This is not just overspending, but it’s effectually stealing from future generations, stealing from our kids. They will be the ones saddled with eye watering debt repayments long after we are gone. They will be the ones paying more tax than they needed to, giving them less prosperity and a lower standard of living.
A Fundamentally Socialist Policy
The budget is fundamentally structured to punish the country’s productive core, those who work, save even a small amount, and build businesses, while simultaneously increasing dependency on the state. Some would say this dependency is a political choice to sure up their dwindling voters.
The freezing of tax thresholds is a stealth tax on working people. As wages climb to keep up with inflation, workers are automatically dragged into higher tax brackets, forcing them to pay more tax without the government officially raising rates. This is part of a pattern where every decision is made to make work, saving, and investing harder—the opposite of what they should be doing.
While we all need to address child poverty, the government is just expanding the welfare budget by lifting the child benefit cap of 2 children and fostering a long-term welfare dependency. Increasing benefits, while seemingly compassionate on the surface, creates dependency and removes the incentive for people to seek work and gain economic independence. Its not popular to say this but it is true, the vast majority of those who will see their benefits rise, by up to a staggering £10,000 per year for those with 6 children, are historically Labour voters.
The overall spending pattern is a politically cynical move. Supporting pensioners and those reliant on welfare, adding to those in the welfare bubble, while attacking the middle class to pay for it. This strategy is designed to lock in votes from people who rely on the state, while pushing the disgruntled middle class toward opposition parties like Reform.
This gloomy verdict was compounded by a growing political storm over tax increases. The Prime Minister spent the following day attempting to refute claims that Labour had broken its manifesto pledge. However, the IFS confirmed the pledge not to raise taxes for working people had been broken. It got worse for Rachel Reeves as she contradicted herself in a post-budget Sky News interview where, in reference to the freezing of tax thresholds, she admitted: ‘I do recognise that that will mean that working people pay a bit more. But I’ve kept that contribution to an absolute minimum...’. So yes Labour, you have broken your election promise.
The Authoritarian Turn: Digital ID and Civil Liberties
Perhaps the most serious issues with this budget concern an emerging authoritarianism.
Despite the huge debts and record taxation, over £1 billion has been allocated for Digital IDs. We are vehemently against this move, as are many free speech groups, as it is a dangerous move toward state control and the ability to track citizens, control their lives, and an attempt to transfer power from the electorate to the state.
Combine this with the recent removal of the right to a jury trial for non-major criminal acts and this is a desperate attempt by Labour to impose an authoritarian regime. The jury system is a fundamental right that allows citizens (peers) to judge citizens, serving as a critical check against a powerful, established judiciary and an authoritarian state. When we have judges who are openly ideological, this is a very dangerous path and one that has not been around for 800 years.
The Verdict
In summary. This budget is another disaster for Britain. It’s a failure of vision. It will lead to more misery, lower growth, and higher inflation, reinforcing a cycle of decay.
This is Britain, our great country deserves a government with a clear plan for austerity and facilitate growth, one that is honest about the need for sacrifice but provides a path to genuine prosperity, rather than merely re-shuffling taxes to squeeze the middle class and entrench state dependency.