Stuart Anderson MP has called for Chancellor Rachel Reeves to resign after delivering a "devastating" Autumn Budget that will "cripple" the rural economy with more tax hikes on incomes, savings, and property.
Responding to the leaked Chancellor's Autumn Budget, Stuart said that the measures will be disastrous for rural communities like South Shropshire - including farmers and pensioners, who will be hit by more tax hikes.
Ahead of the Budget, Stuart had urged the Chancellor to tackle the rural productivity gap by ruling out tax hikes on working people and ensuring fair funding for rural public services.
However, the Chancellor has revealed more than a dozen tax rises, which are worth more than £26 billion. Stuart has added that this will drive a "doom loop" of higher spending, higher borrowing, and higher taxes.
The Office for Budget Responsibility (ORB) has warned that it will push taxes to their highest rate ever since World War Two. It has also downgraded economic growth for every single year of the current Parliament.
This month, unemployment hit 5.0% - the highest since the pandemic. The Office for Budget Responsibility (OBR) expects that this upward trend will remain at this rate until at least 2027.
Meanwhile, business profits will continue to fall in 2025. 180,000 people have already lost their jobs since last year's Budget and inflation is almost double the target at 3.8 per cent to October.
In response to a recent written parliamentary question submitted by Stuart, it was confirmed that overall productivity in the most rural areas is only 82% of the average for England - excluding London.
During the General Election, Labour promised 41 times not to raise taxes on working people. However, last year's Budget increased taxes by £40 billion a year.
Now, an extra million people will be dragged into paying higher rates of income tax, as the Chancellor refused to lift the freeze on thresholds.
This is despite having last year pledged to end the freeze. She had previously stated that continuing the freeze would breach Labour's manifesto and harm working people.
The Chancellor has also announced a £4 billion raid on salary-sacrifice schemes. Workers will need to pay the full rate of National Insurance on any contributions they make over £2,000 a year.
Together, this will cost families £1,600 a year. Half a million pensioners will also be impacted by the frozen thresholds, with the new State Pension set to exceed the Personal Allowance for the first time in 2027.
For the first time in history, someone whose only income is the new State Pension will be dragged into paying income tax. This could involve the administrative burden of going through a tax assessment.
This means that pensioners will be £800 a year worse off. In contrast, the Conservatives had pledged to introduce a new Pensions Tax Guarantee in its Manifesto at the 2024 General Election.
This would have ensured that the new State Pension remained below the tax-free threshold by increasing the Personal Allowance by the highest of prices, earnings, or 2.5%.
Over one hundred thousand homes will also be hit with bills of £4,500 due to a surcharge on council tax bills for more expensive homes - including some farmhouses.
The Chancellor has also axed the decades-long freeze on fuel duty from September 2026. Stuart has said that this will impact rural communities the most, as two-thirds of residents rely on cars or vans to get to work.
The Chancellor has also extended the Soft Drinks Industry Levy (SDIL) to include pre-packaged milkshakes, yoghurt drinks, and ready-to-drink coffees from January 2028.
However, industry has warned that the measure risks punishing small businesses. At the same time, business will be faced with increased statutory employment costs.
Stuart Anderson MP said:
"The Chancellor Rachel Reeves should resign after delivering a devastating Autumn Budget that will cripple the rural economy with more tax hikes on incomes, savings, and property. Under this government, the cost of living has already gone up by over a thousand pounds. Now, the Chancellor has announced a multi-billion-pound round of tax hikes that will hit rural communities the worst. The Autumn Budget is devastating for areas like South Shropshire – including our farmers and pensioners, who will be hit by even more tax hikes. It means extra council tax for local families and will place pubs and cafes under even more pressure. Ahead of the Budget, I had urged the Chancellor to close the rural productivity gap by ruling further out tax hikes and ensuring fair funding for rural public services. However, the Chancellor's decisions drive a doom loop of higher spending, higher borrowing and higher taxes that is disastrous for the rural economy. Growth has been downgraded for every year, while unemployment is up, and inflation is almost double the target. I will continue to campaign for more investment to deliver on local priorities, protect jobs, and enhance public services in South Shropshire."
