Hull City Council's Lib Dem leaders denounce Reeves' budget

Hull City Council's Lib Dem group
-Credit: (Image: Hull Liberal Democrats)


Several senior councillors including council leader Mike Ross have denounced Chancellor Rachel Reeves' budget.

Rachel Reeves has made history in becoming the first female Chancellor to announce a budget in Parliament. The much awaited budget has been heavily criticised by senior members of Hull City Council's Liberal Democrat leadership.

The Council Leader, Cllr Mike Ross has said: "It is incredibly disappointing to see this new Government push ahead with cuts to the winter fuel allowance which will badly impact some of the most vulnerable pensioners in Hull.

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"This is a bitter blow for the many pensioners in Hull who will now be left choosing between heating and eating this winter. I will continue to fight tooth and nail against these cuts that will harm people already struggling with the cost of living crisis."

Hull City Council's Lib Dem group has been highly critical of the government's decision to means test the winter fuel allowance. The council has, this week, pledged over £300,000 to support pensioners who will not receive the winter fuel payment despite being on limited incomes.

The Government's £3 bus fare cap has also been scrutinised, this time by the council's spokesperson for transport, Cllr Mark Ieronimo who has said: "Hiking bus fares to £3 will mean an unfair bus tax on people in Hull. People who get the bus in Hull are already doing their bit to help with congestion and help sustainable transport and the chancellor is choosing to pick on them.

"I know many people in communities like ours rely on buses to travel to work and go about their everyday lives. Slashing funding for bus travel is simply the wrong choice. If the Government was serious about investing in the economy and tackling the cost of living crisis they would think again."

The Lib Dem's spokesperson for finance, Cllr Jackie Dad has also criticised Ms Reeves' budget. She said: "The Labour chancellor said little that will change the funding cuts to local government over the last years. The Lib Dems are doing an amazing job locally when it comes to finance in the face of continuing poor funding from government in the near future.

"Today she chose to completely ignore places like Hull. I'm shocked that Labour has chosen to increase tax by the equivalent of £600 per person."

The Chancellor did not announce any taxes increases for 'working people'. However many are viewing the changes to employers National Insurance rates as an indirect tax on working people. Finance expert Martin Lewis took to X (formerly Twitter) following the announced changes, saying: "The change of threshold so employers now start paying National Insurance at £5,000 not £9,100 is big. For the employers who pay it, at the new 15% rate that alone's £615 increased cost per most employees per year."

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According to PA, while Labour is still promising to protect 'working people', Ms Reeves has admitted that a £25.7 billion increase in national insurance contributions paid by employers is likely to reduce wages.

Speaking on BBC Breakfast, she said: “It will mean that businesses will have to absorb some of this through profits and it is likely to mean that wage increases might be slightly less than they otherwise would have been.”

She added: “I had to make big choices. I don’t want to repeat a Budget like this ever again, but it was necessary to get our public finances and our public services on a stable trajectory.”

“This is a moment of fundamental choice for Britain. I have made my choices. The responsible choices. To restore stability to our country. To protect working people.

“More teachers in our schools. More appointments in our NHS. More homes being built. Fixing the foundations of our economy. Investing in our future. Delivering change. Rebuilding Britain.”