Welsh Conservatives to lead Senedd debate on ‘disastrous’ UK Budget

Emily Price

The Welsh Conservatives are set to lead a debate calling on the Welsh Government to take urgent action to protect Welsh people from the impact of the Autumn Budget.

The Senedd motion calls for a new “Welsh Winter Fuel Allowance” along with support to maintain agricultural property and business property relief for inheritance tax purposes and a new needs based funding formula to replace the Barnett formula.

It comes amid a row over Chancellor Rachel Reeves’ announcement that agricultural assets worth more than £1 million would no longer be exempt from inheritance tax.

From April 2026, a tax of 20% would be raised on the value of inherited farming assets above £1 million under the plans.

While this still represents a tax relief of 50% compared with the standard rate, the move has been attacked by farming unions who have argued it would make the UK more reliant on imports.

Taxes

The Welsh Conservatives have accused Labour ministers in Westminster of failing to be transparent at the election about the scale of tax rises on the horizon after the Budget also confirmed a rise in employers’ national insurance.

The UK Government says it has stuck by its promise not to increase the burden on “working people” and argued that the measures are necessary to put the economy on a firmer footing.

Ministers in Cardiff Bay and Westminster have pointed to a £22 billion “black hole” in the public finances left behind by their Tory predecessors.

The Welsh Tory Senedd group says the “black hole” doesn’t exist.

Pensioners

The motion which will be debated on Wednesday (November 6) afternoon proposes that MSs agree that the new Budget “breaks Labour’s manifesto commitment” to not raise taxes on working people.

The Tories will also raise the issue of Labour’s withdrawal of winter fuel payments and call for a Wales specific fund to support pensioners through the colder months.

The motion also highlights that the Budget failed to deliver on the electrification of the North Wales Main Line and Barnett consequentials from the controversial HS2 project.

Speaking ahead of the debate, Leader of the Senedd Conservatives Andrew RT Davies MS, said: “Labour’s Budget of broken promises will have a devastating impact in Wales.

“This Budget is built on the back of keeping pensioners cold this winter, and the National Insurance rise will be an incredibly destructive jobs tax for Wales’ economy which is already struggling after decades of Labour rule.

“And just like their assault on rural communities in Wales, now Labour’s change to inheritance tax rules risks marking the end of the family farm.

“If the Labour Party wants to join us in standing up for Wales, they should join us in condemning this Budget.”

Amendments

Labour ministers in the Senedd have tabled amendments proposing that the Senedd instead “welcomes” the Budget.

It also noted that the Welsh Government will publish its own draft budget in December setting out how it will support Wales’s priorities.

Plaid Cymru too have tabled amendments calling on the Welsh Government to make representations to the UK Government to scrap the two-child benefit cap.

Their motion also calls for a fair funding deal for local authorities in the upcoming Welsh budget to ensure their finances are not affected by the rise in employer national insurance contributions and for any additional money from Budget to be used to reverse the cut to business rate relief announced in April.