Last week brought yet more concerning economic news: inflation has risen again, now reaching 3.8%, the highest level since 2024. The Bank of England warns it could climb further, peaking at 4%.
At the same time, unemployment in the UK has hit a four-year high of 4.7%. In Wales, the picture is even more troubling, with the employment rate now the lowest in the UK at just 70.8%.
Despite his promises, Sir Keir Starmer has clearly failed to bring down people’s bills. When the Conservatives left office, inflation was at the Bank of England’s target of 2.5%. Under Labour, the economy has spiralled out of control, driven by reckless tax-and-spend policies.
Over the past year, we've seen an increase in National Insurance contributions for employers—a move that has made it more expensive to hire staff and is stifling business growth.
Farmers are also under threat, facing the looming prospect of a so-called "family farm tax" that could cause chaos in rural communities.
In just two months, families and businesses across the UK will be hit by the next round of Labour’s inevitable tax hikes. It’s no surprise many people across the country are deeply concerned.
Labour Ministers must realise that ever-increasing taxation is not the solution to their financial mismanagement. The people of Wales cannot afford to hand over more of their hard-earned money to Ministers who have shown they cannot be trusted to manage it responsibly.
The expectation that hardworking families and businesses will continue to foot the bill for Labour’s mistakes must end.
Sadly, Wales continues to fall behind the rest of the UK in economic performance, with persistently low wages and punishingly high business rates. Keir Starmer once described Wales as his "blueprint for government", and unfortunately, that has proven true, but for all the wrong reasons.
These tax-and-spend policies are in stark contrast to the Welsh Conservatives, who would cut income tax for hardworking people across Wales.
We would also ensure that businesses are not punished for being based in Wales and would reduce business rates for SMEs.
Finally, we would end the endless governmental waste in Wales, ensuring money is prioritised effectively for the needs of the people.
I believe in the potential of Wales, but this potential can only be reached through sensible policymaking, not endless tax and spend.
Peter Fox MS - Monmouth
