The Libertarian Party UK published the note below following the budget.
“the budget ensures rising wages and inflation push more people into higher tax brackets without the need for an explicit rate rise. This is effectively a hidden tax increase”
Well, what a slap in the face for working people yesterday, as Rachel Reeves unveiled the heftiest tax rises in decades. A quick run-down of some of the LPUK NCC’s response to the budget announcement:
For London and South East co-ordinator Marco Bocci, Reeves’ claim that “We beat the forecasts and we will beat them again” is “the best phrase of the budget yet. She should do stand up comedy, Rachel from accounts.”
Let’s pick apart some of the main points:
𝗦𝘁𝗲𝗮𝗹𝘁𝗵-𝘁𝗮𝘅𝗮𝘁𝗶𝗼𝗻 𝘃𝗶𝗮 𝗳𝗿𝗼𝘇𝗲𝗻 𝘁𝗵𝗿𝗲𝘀𝗵𝗼𝗹𝗱𝘀
By freezing income-tax and National Insurance thresholds until 2031, the budget ensures rising wages and inflation push more people into higher tax brackets without the need for an explicit rate rise. This is effectively a hidden tax increase, subverting transparency and voter consent.
𝗜𝗻𝗰𝗿𝗲𝗮𝘀𝗲𝗱 𝘁𝗮𝘅 𝗯𝘂𝗿𝗱𝗲𝗻 𝗼𝗻 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁, 𝘀𝗮𝘃𝗶𝗻𝗴𝘀 𝗮𝗻𝗱 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆
Raising taxes on dividend income, property and investment returns (plus a “mansion tax” on high-value homes) deters capital formation, penalises asset ownership and discourages saving. This amounts to state appropriation of individuals’ legitimately earned returns.
“taxing a previously legal and popular method of efficient retirement saving. This closes off a voluntary, private route to long-term financial security”
£𝟮,𝟬𝟬𝟬 𝗮𝗻𝗻𝘂𝗮𝗹 𝗰𝗮𝗽 𝗼𝗻 𝗡𝗜-𝗳𝗿𝗲𝗲 𝗽𝗲𝗻𝘀𝗶𝗼𝗻 𝗰𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻𝘀
Anything above that limit will now attract full employee and employer NI, effectively taxing a previously legal and popular method of efficient retirement saving. This closes off a voluntary, private route to long-term financial security, raises the cost of saving, and pushes individuals towards greater reliance on state-approved pension structures rather than personal choice.
𝗘𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻 𝗼𝗳 𝗿𝗲𝗱𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝘄𝗲𝗹𝗳𝗮𝗿𝗲 𝘀𝗽𝗲𝗻𝗱𝗶𝗻𝗴
The abolition of the two-child benefit cap and increased welfare, while framed as support for “vulnerable families,” expands the size and scope of the welfare state. This redistributive spending infringes on property rights and encourages dependency on the state.
𝗥𝗶𝘀𝗲 𝗶𝗻 𝘁𝗵𝗲 𝗺𝗶𝗻𝗶𝗺𝘂𝗺 𝘄𝗮𝗴𝗲
Raising the over-21 rate to £12.71 an hour from April 2026 will only put more pressure on already struggling employers to increase wages for others, and is a de-facto endorsement of rising unemployment. The resulting inflationary pressure will only further deepen the cost of living crisis.
For Chairman Andrew Withers, “The overall picture is sucking £26bn out of the productive economy to prop up a dying Welfare State all in the name of ‘fairness.’ The main beneficiaries will not be children in poverty, but the employment of tens of thousands of middle class bureaucrats working in quangos.”
“The overall picture is sucking £26bn out of the productive economy to prop up a dying Welfare State”
Mercia co-ordinator Martin Day congratulates Reeves on “hammering the poor hardest in an effort to balance the books. Government spending MUST be cut.”
Though a separate issue, party leader Alex Zychowski notes that “yesterday – the day before the budget – Labour signalled their intention to abolish trial by jury – an insidious attempt to use the assault on our paychecks to take the light off this egregious assault on our ancient freedoms.”
More on that in the coming days, but to close our analysis, a simple but accurate summary from Northern co-ordinator Dan Clarke: “this budget is a disgrace.”
“hammering the poor hardest in an effort to balance the books. Government spending MUST be cut.”
You can learn more about the Libertarian party at https://libertarianpartyuk.com/.
Originally posted on 26th November at https://www.facebook.com/share/p/1Cw2x799jL/?mibextid=wwXIfr
Image from Grok.