Martin Lewis has responded to Rachel Reeves's Autumn Budget.
In a historic speech, the Chancellor said "the country voted for change" at the General Election.
Reeves said they will "fix the foundations and deliver change through responsible leadership in the national interest".
Some key announcements included:
- Taxes raised by £40bn, including increases to employer National Insurance contributions;
- The minimum wage will be increasing by 6.7% to £12.21, while for those aged 18-20 will get a 16.3% bump to £10 an hour;
- £11.8bn will be provided to compensate those infected and affected by the infected blood scandal;
- £1.8bn will be provided to compensate the victims of the Post Office Horizon scandal;
- £240m for 16 projects targeted at those who are "economically inactive" and most at risk of being out of education, employment, or training;
Today is the first time in our country’s history that a Budget will be delivered by a woman. For every young girl watching, let this be a sign that there should be no ceiling on your ambitions. https://t.co/lKNXMwJTxk
— Rachel Reeves (@RachelReevesMP) October 30, 2024
Now, Money Saving Expert founder and finance guru Martin Lewis has responded to the Budget.
Martin Lewis responds to Rachel Reeves's 'very LONG' Budget and tax rises:
£40bn of tax rises - that is very big indeed
— Paul Johnson (@PJTheEconomist) October 30, 2024
Martin said on X, formerly known as Twitter: "So she isn't reversing the 2% Tory NI cut to employees, but shifting it to employers.
"So the rabbit out of the hat was 'not extending the freeze on tax & NI thresholds' beyond what was planned to 2028.
"An extension of that would've only been on paper anyway, as it could always be changed, increased or reversed at future budgets.
"The change of threshold so employers now start paying National Insurance at £5000 not £9100 is big. For the employers who pay it, at the new 15% rate that alone's £615 increased cost per most employees per year.
"The question is where will that money come from, profits, increasing charges or reducing salaries/benefits?"
