“Never in the history of our country will taxes be higher than they are under this Labour government,” he stated, emphasising that Labour had previously assured voters it wouldn’t raise taxes on working people.
During his address in the House of Commons, Sunak warned that the tax increases would “hobble growth,” citing Labour’s policies as the cause of declining business confidence and claiming a “tidal wave of anti-business measures” would soon impact enterprises.
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Sunak specifically called out Reeves’ announcement of increased National Insurance contributions for employers starting in April and additional taxes on small businesses, the energy sector, and young families. He condemned the borrowing measures and tax hikes, warning that the Budget unfairly targets small businesses, families, and young couples while placing a greater burden on energy and savings.
“They’re taxing your job, they’re taxing your business, they’re taxing your savings. You name it, they’ll tax it,” he stated, noting that the freeze on income tax and National Insurance thresholds would not extend beyond 2028, contrary to prior pledges.
“Sir Keir Starmer promised that Labour would not raise taxes during the election,” Sunak said. “Instead, they’ve broken that promise by increasing National Insurance.”
Sunak further accused Reeves of lacking a plan to control welfare spending, suggesting that “simply getting working-age welfare spending back to pre-pandemic levels” could have managed costs. “This is not her inheritance – they’re her choices,” he remarked, adding that Reeves had “failed to get a grip on public spending.”
The Budget outlines a £22.6 billion increase in the health budget, £5 billion for housing, and funding to extend the HS2 rail line to London’s Euston station. Sunak argued that Reeves is attempting to conceal the borrowing surge by “fiddling the fiscal rules” and claimed she had reversed her commitment not to alter debt targets.