UK CHANCELLOR RACHEL Reeve’s latest budget has been criticised for its tax hikes during a day that saw several protests held across England.

People from different trade unions gathered at St Peter’s square, Manchester, while more than a dozen tractors could be seen parked outside Parliament this morning, protesting the move to put inheritance tax on farm businesses worth more than £1 million.

The latest budget measures will raise tens of billions of pounds over the coming years, culminating in an extra £30 billion (€34bn) from taxes in 2030-2031, official figures showed.

Reeves also unveiled billions of pounds in spending measures, including an end to the two-child benefit cap and above-inflation rises to the minimum wage and pensions.

A group of soft left Labour MPs has welcomed the Chancellor’s decision to scrap the two-child benefit cap, while the leader of the Conservative Party said Reeves had lost credibility and trust with the public.

Recent weeks have seen growing backbench anger with the Labour leadership over briefing against Cabinet ministers and changes to asylum policies, but Reeves’ announcement was broadly welcomed by Labour MPs.

The Tribune Group of “soft left” MPs, which includes former transport secretary Louise Haigh and former whip Vicky Foxcroft, who resigned over welfare cuts, said the Budget was “a Labour Budget, demonstrating Labour values”.

Tax hikes

Driving the tax hikes will be a freeze to income-tax thresholds, which drags more workers into higher tax brackets and breaks pledges made in Labour’s budget last year, shortly after it won a general election.

Reeves also announced higher levies for online gambling, a tax on luxury properties, a mileage-based charge for electric-car users and a cap on pension benefits.

Some sweeteners in her budget included freezes on rail fares and prescription charges, as well as cuts to high energy bills.

The government has additionally extended a sugar tax to include pre-packaged milkshakes and other milk-based drinks.

Reeves said she has “built our economic resilience for the future” as she concluded her Budget statement.

She told the Commons: “This Labour Government is changing our country. In the face of challenges on our productivity, I will grow our economy through stability, investment and reform. I’ve met my fiscal rules and built our economic resilience for the future.

‘Sack her’

Kemi Badenoch said the Chancellor had decided to “tax anyone doing the right thing”.

She told MPs that Reeves’s position is “untenable” and the Prime Minister should “grow a backbone and sack her”.

Badenoch said: “All this Budget delivers is higher taxes and out of control spending. Nobody voted for this. The Chancellor must take responsibility.

“She chose to impose the jobs tax, driving unemployment higher month after month. She chose to abandon welfare reform, meaning the benefits bill is spiralling. She chose to spend more and more money she didn’t have, leaving taxpayers to foot the bill.

Meanwhile the Liberal Democrats have branded Labour’s Budget an “assault on the squeezed middle”, pointing to forecasts by the Office for Budget Responsibility that one in four workers will pay the higher or additional rate of income tax by 2030-31.

The initial Budget reaction from the Institute for Fiscal Studies (IFS) described Wednesday’s financial statement as a “big Budget”.

Northern Ireland

Northern Ireland’s First Minister Michelle O’Neill has described the Budget as a “missed opportunity to tackle the soaring cost of living”.

She said instead of “real action” to bring down bills, many will now face higher tax bills in the year ahead.

O’Neill hailed the removal of the two-child cap in terms of benefits as “welcome progress” but said Starmer and Reeves “failed to deliver a budget that truly supports families and workers through the cost of living crisis”.

Stormont Finance Minister John O’Dowd said the Budget “doesn’t go far enough” locally in investing in public services and boosting growth.

He added that it “strengthened the need” for fiscal devolution in Northern Ireland.

The UK Government confirmed that Stormont would receive an extra £370 million (€422m) to spend.

However, O’Dowd said only £18.8 (€21.4m) million would come in the current financial year and this fell “far short of what is needed to support the delivery of frontline public services”.

With additional reporting from AFP