Marylebone Liberal Democrats Respond to the 2025 Budget

The oft repeated mantra from Chancellor Rachel Reeves is that those with the broadest shoulders should carry the heaviest load. The Labour Government believes some of the broadest shoulders reside in Marylebone. It’s estimated that there are approximately 150,000 homes in the UK which will be ensnared by Labour’s high profile mansion tax and a very significant number of these are located in Marylebone where there are some 6,000 households and the average house price is £2.1 million.

Doubtless, there are many altruistic Marylebone homeowners who believe that the additional tax contribution they are being asked to make is a reasonable price to pay for 14 years of the Conservatives dismantling public services, but we know from our own canvassing efforts that many are elderly residents who may be asset rich but income poor. For them finding up to £7,500 each year, every year will be a struggle. Across the UK, it’s estimated that 40 percent of
homes in the two highest council tax bands are pensioner households.

Commentary on the Budget has focused on Labour’s disingenuous manifesto promise not to raise income tax rates, which has been circumvented by freezing tax thresholds for an extra three years. As a consequence, an additional 780,000 low earners will be dragged into the tax net. It wasn’t supposed to be like this. Labour’s commitment not to increase taxes stemmed from the belief that economic growth would pay for the escalating welfare bill. Sadly, sufficient
growth didn’t materialise in 2025, but more alarmingly, the Budget includes no measures which might just rekindle growth in the years ahead.

 

This is why at the national level the Liberal Democrat’s policy advocating a re-framing of the UK’s relationship with Europe is so important. A new customs union would slash costs for businesses, boost economic growth and mitigate the cost of living crisis. We’ve heard a lot about black holes from Labour, but the one Lib Dems refer to is the £90 billion of tax revenues that has been forfeited as a direct result of Brexit. Just to put this in context, it’s more than three times the additional tax raised by Rachel Reeve’s budget. It's fine to criticise, but only the Liberal Democrats are offering any sort of solution.