Chancellor’s Budget Builds Fairer Economy

Chancellor Rachel Reeves outside 11 Downing Street

Labour’s Chancellor Rachel Reeves delivered the budget on Wednesday, building a stronger and more secure economy.

The economy is stronger than was initially forecast, as the Labour government has delivered 1.5% growth this year, exceeding the forecast of 1%. Wages are up more in the first year of the Labour Government than the first decade under the Conservatives.

After years of decline, this budget strengthens the economy; it rejects austerity or more borrowing, instead making fair and necessary choices to cut the cost of living and improve our public services.

Cost of Living

The budget takes levies off energy bills to save families on average £150 next year, rising to £300 for many poorer households.

This Budget makes tough choices to cut government borrowing every year, more than any other G7 country. This will mean that interest rates – which have been cut 5 times since Labour was elected – can keep falling, reducing mortgages and the cost of borrowing.

This budget cuts inflation by 0.4 points, making it easier for banks to cut mortgage rates and businesses to invest.

This budget freezes train fares for the first time in 30 years, saving commuters from Coventry to Birmingham between £70 and £130.

This budget freezes prescription charges for the second year in a row, to keep them below £10.

Public Service Investment

The Government is maintaining the highest levels of public investment for four decades. New Neighbourhood Health Centres are coming and will further cut NHS waiting lists, adding to the five million appointments already delivered.

Labour is focused on growing the economy so businesses can have the confidence to create good jobs.

The budget is supporting high streets with permanently lower tax rates for 750,000 retail and hospitality properties and backing entrepreneurs and fast-growing companies with tax breaks to hire and list in the UK.

Spending public money wisely, stopping waste

Ending asylum hotels while reclaiming £70m from Tory asylum hotel contracts.

Recovering almost £400m from Covid fraud under the Conservatives.

Cutting the cost of politics and saving more than £250m over the next 5 years.

Building a fairer economy

Ensuring income is taxed more fairly, because many landlords pay less tax than their tenants.

Reforming property taxes so a £10 million Westminster mansion doesn’t pay less than a terraced house in Coventry.

Ensuring everyone who drives on our roads helps maintain them, including electric vehicle owners.

Fair choices, based on Labour values

The broken Tory welfare system, that has left children too poor to eat and millions written off as too sick to work, cannot be left unchanged. This budget delivers:

Reforms to Motability, removing luxury cars to save the taxpayer over £1bn over 5 years.

Support for the long-term youth unemployed, by offering a guaranteed six-month work placement for 18-21 year olds.

An end to those living abroad being able to buy a UK State Pension on the cheap.

Ending the Two Child Limit

The Tory policy of making children poor punishes them and their families in the short run and costs us all in the long run. A child growing up in poverty is less likely to work as an adult and earns 25% less aged 30.

Scrapping the Two Child Limit mean that 5,850 children in Coventry East from bigger families will receive up to £3,514 every year.

Combined with other measures announced this year, including the expansion of free school meals, Labour is lifting 550,000 children out of poverty.

This parliament will see the largest fall in child poverty on record.

This Labour Government’s mission is to renew our economy and our communities. This Budget makes fair and necessary choices for a purpose: building a stronger, fairer country, where living standards rise, child poverty falls and public services are renewed in every corner of Britain.