When the Conservatives left office in July 2024, the UK economy was the fastest growing in the G7. Inflation had fallen to 2.2%, and unemployment stood at just 4.1%.
Fast forward 15 months under Labour; growth has stalled, inflation has climbed to 3.8%, and unemployment is edging towards 5%. This is Labour economics in action.
Before the 2024 General Election, Rishi Sunak warned that Sir Keir Starmer and Labour would raise taxes. That warning now looks set to be proven right.
If the expected tax hikes go ahead, it won’t just hit hardworking taxpayers, it will mark yet another broken promise from Labour’s already brittle manifesto.
Unfortunately, this late November budget is shaping up to be the next volume in a Nightmare Before Christmas, a painful sequel of economic decline and political inexperience.
Despite countless opportunities to rule out tax hikes on hardworking people, the Chancellor has repeatedly failed to do so. In her pre-budget speech last week, she once again refused to give any assurance that taxes won’t rise in the budget.
Within minutes of Rachel Reeves delivering that speech, the pound slumped, and £22 billion was wiped off the FTSE market cap. Who will she blame this time?
The Chancellor has blamed everyone but herself for the state of the economy. At this rate, I’m surprised she hasn’t blamed the clocks going back, though her time is certainly running out.
These looming tax rises will be yet another blow for Wales. The last round of increases saw Labour hike Employers’ National Insurance contributions, leaving Wales to absorb a £72 million shortfall.
You would expect the Welsh Labour Government at that point to stand up to their counterparts in Westminster and say that enough is enough, but unfortunately for the people of Wales, they have no intention of doing so.
The Conservatives, however, have a clear plan to reverse the damage Labour is inflicting on the UK and Wales.
Under Kemi Badenoch’s leadership, a Conservative government in Westminster would focus on creating jobs, cutting welfare dependency and government waste, getting people back into work, and driving economic growth.
Here in Wales, the Welsh Conservatives would abolish Land Transaction Tax, tackle government bureaucracy, and cut income tax by 1p, kickstarting our economy and ending decades of Welsh taxpayers being punished.
Wales and the United Kingdom can only work when the government lives within its means, allows business to grow, and ensures that work pays. That reality is only achievable with the Conservatives in power.
Peter Fox MS - Monmouth
