Budget 2024: 7 reactions to Rachel Reeves’ first statement as Labour chancellor

Rachel Reeves delivered her first Budget speech as chancellor of the Exchequer on Wednesday, announcing a raft of economic measures from the Labour government including an increase in the national living wage to £12.21 next year, more NHS funding, a rise in carer’s allowance and changes to national insurance.

Even before the chancellor took to the despatch box, criticism was levelled at the Labour frontbench by Nusrat Ghani, deputy speaker and the chairman of ways and means, over the “premature disclosure” of Budget policies when they “should have been made in this house in the first instance” – something she said was a “supreme discourtesy to this House”.

Concluding her speech in the Commons, Reeves said the choices made were “responsible choices” to “restore stability to our country” and “protect working people”.

“More teachers in our schools, more appointments in our NHS, more homes being built, investing in our future, delivering change and rebuilding Britain,” she said.

In a passionate response as leader of the opposition, outgoing Conservative Party leader Rishi Sunak accused Labour of “broken promise after broken promise”.

He added: “[The Budget] reveals the simple truth that the prime minister and the chancellor have not been straight with the British people.

“Today’s Budget sees the fiscal rules fiddled, borrowing increased by billions of pounds, inflation-busting handouts to the trade unions, Britain’s poorest pensioners squeezed, welfare spending out of control, and a spree of tax rises they promised the working people of this country they would not do.

“National insurance, up; capital gains tax, up; inheritance tax, up; energy taxes, up; business rates, up; first-time buyer stamp duty, up; pensions tax, up. They have fiddled the figures.”

So what exactly was included in the Budget, and what do people make of it?

Allow us to round up the reactions…

The first female chancellor

First off, ahead of announcing all the economic bits, Reeves said she was “deeply proud” to be the first female chancellor.

“To girls and young woman everywhere, I say: let there be no ceiling on your ambition, your hopes and your dreams,” she said.

Social media users have since praised the “moment in history”.

Private jets

Twitter/X users relished the dig at Sunak’s use of private jets during the Budget, when Reeves announced a 50 per cent increase in the rate of air passenger duty.

“That is equivalent to £450 per passenger for a private jet to, say, California,” she joked.

Covid corruption commissioner

Reeves also said she will soon appoint a “Covid corruption commissioner” tasked with leading the government’s work “to uncover those companies that used a national emergency to line their own pockets”.

According to the official job posting last month, interviews ended last week, and the role will see the individual make sure “everything possible is being done to recover public money lost to pandemic-related fraud and underperforming contracts”.

Cheaper pints

In news which has delighted pub goers, Reeves also announced that the cost of a pint will go down by a penny.

Don’t go spending that saving all at once, people!

Freezing fuel duty

However, other measures have been met with criticism – not least from green campaigners, who noted an increase in the bus fare cap from £2 to £3 and the continuation of the freeze on fuel duty.

Benefits reform

Labour were also condemned for announcing plans to access the bank accounts of benefit claimants in a bid to tackle benefit fraud, and to implement the Tory policy of reforming the Work Capability Assessment.

Carer’s allowance

Referencing Ed Davey’s campaigning on the issue, Reeves announced the weekly earning limit for carer’s allowance would go up to 16 hours at the national living wage – something the government says will be worth an extra £45 from April and making more than 60,000 carers eligible for support.

Live coverage of the Budget, including further reaction and details of the many proposals announced in Reeves’ Commons statement can be found on The Independent.

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