Labour claims progress, opposition cries foul
Welsh Labour were quick to claim victory on one of their long‑standing demands: the scrapping of the two‑child benefit cap. First Minister Eluned Morgan said the change would lift support for 69,000 children in Wales, describing it as “helping to tackle the scourge of child poverty.” Labour also pointed to nearly £1bn in additional funding for the Welsh Government, which ministers say will bolster public services and allow investment in steel transition at Port Talbot, AI Growth Zones, and nuclear energy at Wylfa.
Plaid Cymru, however, accused Westminster of once again failing to deliver fair funding. Treasury spokesperson Ben Lake MP said the Budget “proves that when Westminster does the counting, Wales always loses out,” highlighting the absence of Barnett consequentials from major rail projects and warning that employer National Insurance increases would hit Welsh services hard. Plaid also criticised the First Minister’s response, claiming she had “no influence” over the UK Government’s decisions.
(Image: UK Parliament)
Conservatives, Reform and Lib Dems sharpen attacks
The Conservatives seized on the Budget’s chaotic delivery and its tax implications. UK leader Kemi Badenoch told MPs there was “no growth and no plan,” branding the episode a “circus” and accusing Reeves of breaking promises by extending the freeze on tax thresholds. Welsh Conservatives echoed the criticism, calling for a review of Wales’s fiscal framework and warning that inheritance tax changes and higher employer National Insurance would damage family farms and businesses.
Reform UK Wales went further, describing the Budget as proof that “having Labour Governments at both ends of the M4 has been a disaster.” The party said Reeves’s measures would take taxes to “post‑WW2 highs,” framing the upcoming elections as a choice between Plaid Cymru, whom they accused of backing Labour’s tax rises, and Reform as “a new hope for left behind communities.”
(Image: UK Parliament)
The Liberal Democrats also joined the chorus of criticism. Party leader Ed Davey said Reeves “has diagnosed the disease but not administered the cure,” arguing that “you can’t tax your way to growth” and calling for a new trade deal with Europe. Former pensions minister Steve Webb added that the extended tax threshold freeze would drag hundreds of thousands more pensioners into paying income tax, warning of a growing burden on older households.
Together, the reactions underline how Reeves’s Budget has become a political battleground in Wales: Labour presenting it as a progressive step for families and public services, while opposition parties line up to portray it as chaotic, unfair, and economically damaging.
For a full breakdown of the Budget measures and their impact in Wales, read our explainer here.
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