PRESS RELEASE : Mini-budget a “huge gamble on health of economy” [October 2022]
The press release issued by the Welsh Government on 1 October 2022.
The UK devolved governments are seeking an urgent meeting with Chancellor Kwasi Kwarteng to discuss immediate action to reverse the damaging effects of the mini-budget.
Finance Minister Rebecca Evans is joined by Finance Ministers from Scotland and Northern Ireland in highlighting the profound impact of “the largest set of unfunded tax cuts for the rich in over 50 years” stating it is “a huge gamble on public finances and the health of our economy”.
In a joint letter, they warn against being condemned to another decade of austerity and express deep concern over reports that UK government departments will be asked to make spending cuts to balance the budget, which may have profound consequences for devolved budget settlements already eroded by inflation.
The Ministers also renew calls for the UK government to provide targeted support for households and businesses, funded through a windfall tax on the energy sector. They also call for additional funding to increase Social Security benefits to support low income households with the higher costs they will face through winter, including a £25 per week uplift for Universal Credit and legacy benefits.
By abolishing the 45p additional rate of income tax the UK government has shown its true colours. This will make the rich richer and further embed inequality in our communities.
