Missing: Bold plans from a weak Budget
Labour’s Budget was a bitter disappointment. At a time when the economy is stagnant and in the grips of a cost-of-living crisis, this Government failed to deliver the bold action we desperately need. Luckily for them, the Liberal Democrats have done the work for them - laying out the ambitious steps needed to deliver real change:
Cost of Living
Prices are going up everywhere you look. From soaring energy bills to the crippling cost of a daily commute, people are working harder than ever but still struggling to make ends meet. The Government promised 'breathing space', but while their £100 rebate for households in council tax bands A - D is better than nothing, it ignores 1.4 million low income households in other bands who will be left without support. Other temporary measures in the Budget are set to expire soon, with rail fares going up in April, and July due to see an increase in fuel duty and VAT going back on electricity bills.
Lib Dem plan
A broader, fairer and longer-lasting support to make a real difference for families. We would cut energy bills by £100 a year - and £180 for those who need it most - through an Essential Energy Guarantee, funded by clawing back the excess profits made by energy network monopolies.
We would also cut rail fares by 10%, bus fares to £1, VAT on public EV charging from 20% to 5%, and fuel duty by 10p, to keep Britain moving - funded by the higher tax revenues generated from higher fuel prices triggered by Trumpflation. And we would cut VAT on hospitality, accommodation and attractions by 5p to reduce the cost of going out and support our high streets - funded by a windfall tax on the unexpected and unearned profits of big banks.
That's real 'breathing space'.
Growth
Under the Conservatives and now Labour, economic growth has been anaemic. Without growth, we can't end the cost-of-living crisis or fix our crumbling public services.
Lib Dem plan
The single biggest thing the Government could do to grow our economy would be to fix our broken relationship with Europe, after the Conservatives' botched Brexit deal - cheered on by Nigel Farage - left us all worse off. But despite some movement on narrow deals for food and agricultural products, Labour are firmly sticking to their red lines on Europe - ruling out joining the Single Market or a customs union. Without these bold steps, the Government is merely patching up a bad deal - not fixing our broken trading relationship.
We would entirely rip-up the botched Brexit deal and instead join the Single Market and customs union, to cut red tape for British businesses and boost trade, helping our economy grow again. Growth will in turn boost the Government's tax revenues - money to help fix our public services and provide relief with the cost of living. Back our plans for a 'New Deal with Europe' by signing our petition here.
Tax
As energy bills and inflation rise, households need tax relief, not stealth tax increases. Yet both the Conservatives and Labour have frozen income tax thresholds, dragging more people into higher tax bands.
Lib Dem plan
This Budget has frozen the thresholds again. By 2031, 6.7 million people will be dragged into paying income tax for the first time, while 5.4 million more ordinary people - like nurses, teachers and police officers - will face the higher rate designed for stockbrokers and merchant bankers. We would raise the tax-free personal allowance to £15,000 over five years, taking 2.5 million people out of paying income tax altogether, while taking 750,000 out of paying the higher rate - putting £680 back in people's pockets. Unlike Reform, who want to cut taxes by slashing support for disabled people, we would fund them through the growth delivered by our plan on Europe. Back our plans to 'Cut Your Tax By £680' by signing our petition here.
Defence
After years of the Conservatives underinvesting in our military, we are now dangerously exposed and woefully unprepared. In these volatile times, with war raging in Europe and with an unreliable President Trump, we desperately need to renew our defences.
Lib Dem plan
The Government has yet again kicked the can down the road by delaying a decision on how they will meet 3% of GDP on defence by 2030 to the next Spending Review - leaving Britain dangerously vulnerable. We would kickstart the immediate regeneration of our armed forces by issuing £20 billion in new defence bonds, ring-fenced for investment in capital projects to rebuild our military. We haveoutlined already how we'd allocate part of this funding to rapidly expand the UK's ship building capacity, and deliver six new frigates to defend our territorial waters and critical national infrastructure at sea. As part of our new Growth and Defence Partnership with Europe, we would also seek to access and deliver more joint European defence funding, to pool our resources and rearm at the pace this moment demands.
Health
After years of Conservative neglect, the NHS is in crisis. People are waiting weeks to see their GP, thousands are stuck in hospital despite being able to leave, and leaking hospital roofs and broken equipment are closing wards and wasting staff time. The NHS was an afterthought in this Budget, with the only support being an extra £190 million for winter pressures - an amount that would barely cover eight hours of NHS spending. Shockingly, £80 million is being cut from maternity care, despite maternal deaths being at a 20-year high.
Lib Dem plan
Liberal Democrats would rescue the NHS as a top priority, investing in primary care and community services and fixing broken buildings, so people spend less time in hospital and get help sooner, closer to home - saving money in the process. On maternity care, the NHS spends £1.3bn a year on negligence payouts, more than twice what experts say it would cost to make care safe. We've set out an urgent plan to do exactly that and make Britain the safest country in the world to have a baby.
This Budget was far too timid. It won't deliver the economic growth, support for families, or national security that is desperately needed.
Instead, the Government should follow our bold plans to make Britain richer, safer and stronger. If you believe our country needs bold action like that outlined in this email, join our party today.
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