Chancellor Rachel Reeves’ uncle Terry Smith, 73, has joined a chorus of critics slamming Chancellor Rachel Reeves’ Budget, branding it “a disgrace” that puts “skivers ahead of strivers.”
The retired construction boss, whose sister Sally is Ms Reeves’ mum, broke family ranks to deliver a scathing verdict on the £30 billion tax bomb.
Speaking to The Sun, Mr Smith pulled no punches: “It is going to cost the working class billions of pounds and leave the country worse off. It’s the worst Budget I’ve ever heard — and I’m 73, so I have been around for quite a few.
“Rachel is my niece and is a lovely person, but government is totally out of their depth.”
Labour accused of breaking manifesto pledges
Ms Reeves faced accusations of driving a horse and cart through Labour’s manifesto pledges not to hit workers. By freezing tax thresholds, millions will be dragged into paying for the first time or clobbered with higher rates. She also announced a hit on salary-sacrifice pension schemes, robbing people of thousands when they retire.
Jobless parents hail benefit cap abolition, vow to have more kids
However, jobless parents celebrated Ms Reeves’ decision to abolish the two-child benefit cap, calling it a “dream come true” and vowing to cash in by having more children. The move has sparked concerns about incentivising welfare dependency.
Amid the growing backlash, it emerged that Labour will try to appease businesses by scaling back worker rights plans, such as allowing unfair dismissal claims from Day One. Ms Reeves insisted she was going nowhere, declaring: “Lots of people have tried to write me off over the last 16 months, and you’re not going to write my obituary today.”
The Institute for Fiscal Studies delivered a stinging verdict, warning households faced a “truly dismal” increase in living standards. IFS boss Helen Miller called for growth-boosting tax reforms, saying: “This felt mostly like the Budget of a government trying to scrape through.”
Taxes at highest level in history, growth downgraded
Ms Reeves raised taxes to their highest level in history, then warned she could be back for more. In response, the Office for Budget Responsibility downgraded growth for next year from 1.9 per cent to 1.4 per cent and forecast it would still only be 1.5 per cent by 2029.
Mr Smith added: “This Budget is there to help people that don’t really want to work. I know people in Manchester with three or four children who are just going to have more as the state will reward them. If they can have another child and get more money, that’s exactly what they’ll do.”
While praising his niece for becoming the first female Chancellor after studying at Oxford, Mr Smith questioned her qualifications and experience for the role, telling The Sun: “I don’t think she had the qualifications or the experience to be Chancellor.”
As the fallout from the Budget continues, the Chancellor faces an uphill battle to win over critics and convince the public that her tax-hiking plans will deliver a brighter future for Britain.
