The public remains sharply divided over the fairness and impact of the new Budget.
The ink has dried on Labour’s new Budget, and opinions are divided. Chancellor Rachel Reeves’ plan, packed with ambitious announcements on taxes, spending, and public investments, has sparked widespread debate. While some praise the commitment to revitalising public services and promoting economic growth, others voice concerns about tax hikes, cost-of-living pressures, and potential impacts on businesses. Here’s a closer look at how the Budget has been received by the public and private sectors.
Public opinion: A nation split
The public remains sharply divided over the fairness and impact of the new Budget. According to recent polls:
- 34% believe the Budget is fair, while an equal percentage (34%) argue it is not. A significant portion (32%) remain unsure.
- Only 20% of people think the Budget will leave the country better off, while nearly double (38%) believe it will make things worse. Another 25% think it won’t make much difference.
- Despite reassurances from Labour that main taxes on working people will not increase, 39% of Britons feel they will be worse off, with only 7% expecting to benefit.
The perception of unfairness also looms large, with critics arguing that certain groups will bear a disproportionate burden from the tax changes. Labour’s promise to shield ordinary workers from major tax hikes has not fully convinced the public, as doubts remain about the broader economic repercussions.
Businesses express concern
While public opinion remains mixed, sentiment among businesses is decidedly more negative. Many firms are grappling with the Budget's implications, particularly the planned increases in National Insurance contributions. Business leaders warn that higher operating costs may force them to raise prices, reduce investments, or even cut jobs - actions that could ripple through the economy. While businesses recognise the focus on public services, the financial burden it causes could limit growth and innovation.
One of the Budget’s most contentious aspects is its potential impact on household finances. For families already feeling the pinch, the prospect of higher prices is daunting. Many are bracing for a tougher year ahead, as businesses pass on their increased costs to consumers.
A balancing act
Labour’s Budget aims to strike a balance between investment in public services and fiscal responsibility but achieving this has proven divisive. Supporters highlight the importance of prioritising healthcare, education, and infrastructure, while critics point to the economic risks tied to higher taxes and business costs.
With just 20% of people believing the Budget will improve the country’s fortunes, Labour faces a challenging road ahead. The success of this Budget will depend on whether its promised benefits materialise in the long term - both for households and businesses.
As the dust settles, one thing is clear: the nation’s reaction to the new Budget underscores the complexities of governing in uncertain economic times. The coming months will reveal whether Reeves’ vision can win over skeptics and deliver the growth and fairness that the nation so urgently seeks.
