Martin Lewis gives Budget reaction as he asks 'where will that ...

Martin Lewis has reacted to Rachel Reeves' landmark first Labour budget, asking where money for one key announcement included in the massive document will "come from".

Taking to X, formerly Twitter following the Chancellor's landmark announcement this afternoon, he drew on the massive national insurance changes for employers, which will see larger businesses contribute 15 percent from April 2025. The pressure will be placed on those "with the broadest shoulders", she said. But Lewis has asked how the businesses will pay for a £615 per employee surge.

He said: "The change of threshold so employers now start paying National Insurance at £5,000 not £9,100 is big. For the employers who pay it, at the new 15% rate that alone's £615 increased cost per most employees per year. The question is where will that money come from, profits, increasing charges or reducing salaries/benefits?"

He added: "The reason I say 'for employers who pay it' is because the Employers Allowance for NI has been increased from £5,000 to £10,500 a year (so this is amount off employers NI bill) so small businesses won't pay it."

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He had previously expressed some trepidation over the government announcement before it was made, saying it was vital that Ms Reeves offer something for Britons following the decision to axe the winter fuel payment. With the lives of the country's poorest hanging in the balance, he suggested the budget was "one of the tightest" he had seen "in a long time".

Following a meeting with the Chancellor, he outlined changes he wanted to see in key areas, including to the winter fuel payment, carer's allowance, energy bills, lifetime ISAs, tax-free childcare, child benefit, and the winter fuel payment. He told The Times that he had provided the government with "realistic asks", some of which have were included in today's announcement.

Mr Lewis said: “We are looking at perhaps one of the tightest budgets we have seen in a long time, but none of the things I am suggesting are pipe dreams. They are realistic asks and many do not require much expenditure. A large number of things within the consumer finance world are simply poorly designed. We need a fair system that works well.”

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