Labour Budget Fails to Fill Brexit Black Hole

12 Jan 2026

For the second Budget in a row, the Government has failed to take the bold action needed to grow the economy and tackle the cost of living crisis.

Instead of fixing the UK’s broken relationship with Europe - the single biggest thing that could be done to turbocharge our economy - Labour hiked taxes on working people.

Figures show that an estimated 609,000 of the lowest earners are set to be dragged into paying income tax by 2029-30 due to the freeze on income tax thresholds.

This was a low-growth, high-tax budget from a Government that isn't listening.

A new customs union with the EU would slash costs for businesses and begin to repair the £90-billion-a-year black hole in Government finances left by the Conservatives’ terrible Brexit deal, money that could be used to support families with the cost of living and fix the NHS and social care.

Will you sign our campaign to fix Britain’s trade, and share it with your friends and family, to help our economy grow? www.libdems.org.uk/trade

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