South West Devon MP Rebecca Smith hits out at Budget as tax rises revealed

South West Devon MP Rebecca Smith has sharply criticised today’s (26 November) Budget, warning that new tax rises and the scrapping of the two-child benefit cap will put further pressure on working families across the region.

Her response came after Chancellor Rachel Reeves set out the government’s plans in the Commons, confirming £26 billion in additional tax measures, including the continued freeze of income tax thresholds until 2030-31.

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In a statement issued shortly after the speech, Ms Smith said the Budget “will hit millions of working families at a time when they can least afford it”, arguing that taxes “have risen seven times more than [Labour] promised during the General Election”.

She said:

“Rachel Reeves has delivered a Budget that will hit millions of working families at a time when they can least afford it. She promised lower taxes at the election, yet under her watch they have risen seven times more than she promised… adding roughly £26 billion to the burden on households in this budget alone.”

Ms Smith criticised the decision to remove the two-child benefit cap, calling it “an ideological move” and adding:

“The Government’s move isn’t about helping families; it ignores public opinion and raises taxes on working people, all to keep the Prime Minister’s backbenchers happy.”

The MP said the freeze in income tax thresholds amounted to a “stealth tax rise” and highlighted downgraded OBR growth forecasts over the next four years.

She also challenged the government’s plans to alter green levies on energy bills, saying:

“Labour promised to cut bills by £300, but bills have gone up by £200 since the election… The Chancellor’s plan saves families less than the Conservatives’ Cheap Power Plan, costs taxpayers more, and doesn't reduce energy bills for struggling families and businesses.”

Ms Smith warned that many households in South West Devon were already stretched by high living costs, fuel prices and rising mortgage rates.

“This is a Budget that punishes responsibility, rewards dependency, and betrays the hardworking businesses and workers across South West Devon,” she said. “My constituents deserve better than a Government raising taxes to cover for its own mess.”

She added that 90% of residents who responded to her recent pre-Budget survey had expressed concerns about today’s announcement.

Concluding her statement, she said:

“Only the Conservatives have a plan to cut spending, cut taxes, reduce the deficit, and provide the antidote to Labour’s economic incompetence. I will fight these decisions every step of the way.”

The Treasury said its Budget plan would support economic stability, increase investment and “deliver growth built on sound public finances”.