Conservative Councillors have slammed the budget announcement by the Chancellor, deeming it a ‘devastating blow for working people’ with £26 billion of tax rises taking the tax burden to an all-time high.
This reaction follows Chancellor Rachel Reeves’s second Budget, which sets out a series of tax and savings changes that will directly impact the finances of residents across Milton Keynes.
After weeks of speculation regarding income tax, the Labour Chancellor confirmed that income tax thresholds will remain frozen until 2031, three years longer than planned. As wages rise to keep up with inflation, this freeze will drag more hard-working residents into higher tax bands, leaving them with less to take home.
Close to a million people who don’t pay income tax today will find themselves pulled into paying it the moment their income edges past the £12,570 mark. That includes pensioners, as the state pension is set to rise to almost the same level as the tax threshold next year. The IFS has also pointed out that even a part-time minimum-wage worker, doing fewer than 20 hours a week, will now be paying income tax because of the threshold freeze.
Cllr Shazna Muzammil, Conservative Group Leader, said:
“Labour has broken their manifesto promise; every worker and many pensioners will be paying extra tax due to the Government’s economic mismanagement and a ballooning welfare bill. These decisions hurt our residents, our businesses and our country’s future. The Chancellor talks about improving living standards, yet every announcement today makes it harder for businesses, harder to work, and harder to save”
Beyond income tax, Conservative Councillors highlight that Labour has also targeted residents who save for the future. Under-65s will now only be able to save £12,000 tax-free in a cash ISA, down from £20,0003. At the same time, the Government has introduced a £2,000 cap on what workers can put into their pension through salary sacrifice — a method many use to prepare for retirement.
Cllr Muzammil said:
“When Rachel Reeves says ordinary people will ‘have to pay a little bit more’, she is talking about the very residents who are trying to save responsibly. These are the people now footing the bill for Labour’s spending decisions.”
“These savings were taxed once already — taxing them again is simply wrong. People in Milton Keynes save for their kids, for their grandkids, for a holiday they’ve worked hard for, or for the retirement they deserve. This budget punishes everyone who thought it was best to save. When Government makes it harder to earn and harder to keep what you have saved families lose financial stability, limiting aspirations and opportunities for growth. That is the opposite of what our city and our country needs.”
Conservative Councillors say this Budget does very little for the working people of Milton Keynes. There is no clear plan to help families with the cost of living. No plan to help pubs, shops, restaurants, and businesses survive rising costs. Instead, residents face higher taxes on their income, homes, savings, pensions, cars, and even everyday purchases.
Cllr Muzammil concluded:
“This Budget does nothing for Milton Keynes. It offers no hope, little growth, and no pathway for families who want to get ahead. We should be doing more to help people back into work, supporting small and big businesses so they can create the jobs our city needs and get more people into work. We should be rebuilding a welfare system that supports people who genuinely need it, helps people back into work, and reduces long-term dependency. Milton Keynes deserves a Government that backs aspiration, encourages growth, and makes it possible for families to enjoy life without having to count every penny.”
