Rachel Reeves' Budget Faces Fury as 'Stealth Tax' Hits Squeezed Middle
Reeves' Budget sparks fury over 'stealth tax' rises

A Budget That 'Punishes Responsibility'

Chancellor Rachel Reeves' first major Budget has triggered a wave of anger and disillusionment among readers, who overwhelmingly feel the £26bn package of tax rises unfairly targets hard-working households already strained by the cost of living crisis. Announced on Wednesday 26 November 2025, the financial plan is being condemned for prioritising political goals over public need, with many labelling it a 'kick in the teeth' for responsible taxpayers.

Key Measures Sparking Outrage

The centrepiece of the discontent is the decision to freeze income tax thresholds until 2030–31. This policy of fiscal drag is a stealth tax that will pull an estimated 1.7 million more people into higher tax bands, directly hitting the 'working people' Labour pledged to protect. Readers expressed a profound sense of betrayal, arguing that those who plan, save, and work hard are being treated as the government's 'piggy bank'.

Further fuelling the anger are changes to pensions and savings. The government will now tax pension contributions over £2,000 and implement cuts to ISA allowances

However, the most contentious measure proved to be the scrapping of the two-child benefit cap. This move, which will hand an average of £5,310 to 560,000 larger families, was met with accusations of economic illiteracy and of rewarding personal choices at the expense of other households facing the same financial pressures.

Readers Voice Their Frustration

The sentiment from the community was one of deep frustration. One reader, Anunaki, captured the mood, stating, "As a middle-class worker currently being taxed at around 62 per cent, I find it completely unacceptable... hitting pensions through salary sacrifice is another kick in the teeth."

Another, Thomas, called the Budget an "unmitigated disaster that punishes responsibility and rewards irresponsibility," adding that it signals "the state will foot the bill for having more children, regardless of one's ability to provide for them."

Criticism also extended to the government's competence and messaging. VickiG noted the chaotic pre-Budget leaks and U-turns, suggesting the Chancellor was "more desperate to please her own party members and hang on to her own position than do the right thing for the economy." Others, like Jay, questioned whether the reliance on stealth taxes over transparent wealth taxes was down to "incompetence, or unwillingness to bend to pressure."

Amidst the tax rises, weakened growth forecasts have left readers with little confidence that this financial pain will lead to any meaningful economic improvement. The overarching feeling is that this Budget has broken a key manifesto promise and will slowly bleed dry the very households that drive the UK's economic growth.