A furious BBC Question Time audience member on Thursday took 'economically illiterate' MPs to task over the Government's tax rises, delivering a fiery rant that resonated with many viewers.
Chancellor Rachel Reeves on Wednesday unveiled a £40 billion tax hike, including a £25 billion increase in employer National Insurance contributions. She conceded the measures would 'have consequences' as firms reduce wage bills to cope. Business leaders warned hundreds of thousands of jobs could be lost, and economists described the NI rise as a 'tax on working people'.
The audience member said: 'I do not understand how, out of 65 million people in this country, we end up with economically illiterate people in the Government. This is our money. And I'm sick of being asked to pay more and more and more. I feel poorer than I did 15 years ago.'
The Tories claimed the Budget amounts to an extra £2,237 in tax for the average working household per year, pushing the overall tax burden to a record 38.3% of GDP by 2027-28. The Office for Budget Responsibility forecasts that 76% of the NI increase will be passed on through lower real wages, and the equivalent of around 50,000 jobs could be lost.
Ms Reeves defended her reforms, insisting the Budget was needed to 'wipe the slate clean' and stabilise public finances. However, she admitted the NI hikes would likely mean wage increases are slightly lower than they would have been. Government borrowing costs hit a one-year high, and the pound fell.
