Inside story: Labour MPs secret talks about new Budget that changed everything
First Labour Budget in over a decade brings unexpected mixed reactions from party members. Behind-the-scenes discussions show deep concerns about tax increases and economic growth predictions
Labour MPs are showing two-faced reactions to Rachel Reeves first Budget since taking office. While the public-facing response looks good-natured many backbenchers express deep worry behind closed doors
The budget (presented on 11/02/24) includes record-breaking tax increases and borrowing levels which has made some party members un-easy about its impact. One long-time MP said the plans dont match with Office for Budget Responsibility predictions; suggesting growth targets might be un-realistic
The financial watchdog cut its growth outlook and warned about a two-year living standards drop - due to the £40-billion tax changes that will affect wages. This creates a hard situation for MPs who promised to shield working-class people from extra costs. “My constituents are horrified by it“ stated an un-named backbencher (who also pointed out the winter fuel allowance cuts)
The left-wing of the party has its own set of worries. Kim Johnson from Liverpool-Riverside wrote on social-media that while the Budget moves in right direction it misses chances for real change. Meanwhile Nadia Whittome praised capital gains changes but wants more action on un-equal wealth distribution
We must tackle poverty to increase demand in our economy‚ or we wont secure needed growth
Recent local election results add extra pressure with Labour facing losses in council by-elections. The party lost spots to:
- Conservative Party (4 seats)
- Reform UK (2 seats)
Some MPs stay more up-beat saying this Budget might help rebuild trust after difficult start. A Labour source defended it saying it will fix NHS problems build more homes and boost investment - but many still worry about explaining these changes to voters
