Government Budget gives 'real challenges' for West Yorkshire

Meanwhile, Bradford Council has welcomed the Budget as the "first steps towards restoring funding for councils which is so badly needed".

Labour MP for Leeds West and Pudsey and Chancellor of the Exchequer Rachel Reeves created history today by being the first woman to deliver a Budget.

Ms Reeves said: “Today is the first time in our country’s history that a Budget will be delivered by a woman.

“For every young girl watching, let this be a sign that there should be no ceiling on your ambitions.”

Chancellor Rachel Reeves leaves 11 Downing Street with her ministerial red box before delivering her Budget in the Houses of Parliament (Image: Jordan Pettitt/PA) The Budget will increase taxes by £40 billion, as the Chancellor promised to “fix the foundations” of the economy and repair public finances after the Conservatives left behind a £22 billion “black hole”.

Ms Reeves claimed the scale of the public spending problems she inherited was worse than previously thought.

She said: “Any Chancellor standing here today would face this reality. And any responsible Chancellor would take action.”

National insurance contributions for employers will increase from 13.8 per cent to 15 per cent from April 2025, with a lower starting threshold – from £9,100 to £5,000.

The national minimum wage for over-21s will also rise from £11.44 to £12.21 per hour from the same month.

There will be a £22.6 billion increase in the day-to-day health budget as well as a £3.1 billion increase in the capital budget, which Ms Reeves called the “largest real-terms growth in day-to-day NHS spending outside of Covid since 2010”.

The Budget will deliver the next steps in the Government’s approach to regional growth, through investment, devolution, and reform.

One of these steps is increasing the City Region Sustainable Transport Settlements, which will fund a variety of projects including the continued development of West Yorkshire Mass Transit.

The Government has also committed to securing delivery of the TransPennine Route Upgrade and maintaining momentum on Northern Powerhouse Rail by progressing planning and design works to support future delivery.

Mayor of West Yorkshire (Image: Other) Mayor of West Yorkshire, Tracy Brabin, is happy to hear of support for transport projects in the county, including investment in Bradford Forster Square, but is aware the business community in particular may struggle with some of the decisions.

She said: “Today is a significant moment for our country as Rachel Reeves smashes the glass ceiling and becomes the first-ever woman to deliver a Budget in Parliament.”

Ms Brabin added: “While some of these decisions present real challenges for our region – especially for our business community - this must be balanced against the increase in the national minimum wage, support for the NHS, and prioritising longer-term investment in infrastructure.

“I was pleased to hear the Chancellor back our West Yorkshire Mass Transit programme, the Transpennine Route Upgrade and investment in Bradford Forster Square station.

“We have ambitious plans for our region that will deliver growth and put more money in people’s pockets, and we will work with this Government to deliver them.”

Bradford Forster Square (Image: Telegraph & Argus) Councillor Susan Hinchcliffe, Leader of Bradford Council, said: "We await confirmation of some of the detail but it’s great to see the huge investment in the NHS and the first steps towards restoring funding for councils which is so badly needed.

"Public services have been left on their knees after 14 years of austerity from the Tory Government.

"The Chancellor’s focus on infrastructure spending as a means to support growth matches strongly with our own ambition here in the Bradford district.

"We want to work with government constructively to deliver for all our communities across the district.

"We’re a large significant district, right in the heart of the North.

"For the country to succeed, Bradford district needs to succeed, and we’re ready, willing and able to play our part."

Positives for businesses and the public include a freeze on fuel duty next year, as well as draught duty being cut by 1.7 per cent, taking a penny off pints in pubs.

But the West & North Yorkshire Chamber of Commerce said the changes to national insurance contributions and an uplift in minimum wage represent “significant increases in overheads for businesses at a time when costs are already under significant pressure”.

Mark Casci, head of policy and representation, said it will mean “real headaches for businesses” and that “any plans to invest or create jobs will now become far more difficult”.

He added: “Tax is now the number one cost pressure cited by businesses here in Yorkshire and that situation will be exacerbated by these decisions.

“In the months ahead, employers of all size will be hoping to see the cost burden they face begin to recede so that they can invest and innovate to drive the national economy forward.”

Person pouring a pint (Image: Canva) Inheritance tax thresholds will be frozen for a further two years until 2030.

Other changes include a flat-rate of duty for all vaping liquid from October 2026, a one-off increase in tobacco duty to encourage people to give up smoking, and an increase in the soft drinks industry levy to account for inflation.

There will be “over £5 billion of Government investment” in housebuilding, with £1 billion to strip dangerous cladding from buildings.

Ms Reeves promised £1.4 billion to rebuild more than 500 schools, along with £2.1 billion for school maintenance.

The Chancellor promised to save £4.3 billion a year from the cost of welfare by tackling fraud and recovering debt.

Labour MP for Shipley Anna Dixon, who took over from long-standing MP Sir Philip Davies in July, said: “I am delighted that the Chancellor personally referenced my efforts to stand up for carers in her Budget speech.

"She announced plans to raise the Carer’s Allowance earnings limit by £45 per week, allowing over 60,000 more carers to access the allowance.

“I am proud of our Labour government that is fixing the foundations, delivering change by fixing the NHS, and working people face no tax rises."

She added: "The Chancellor is also the first woman to deliver a Budget in this country.

"I hope that this, along with my election as the first woman MP for Shipley, will inspire young girls across our local area to believe that there should be no ceiling to their ambition."

MP for Bradford South Judith Cummins said: “As Deputy Speaker, it has been a privilege to chair the robust debate on this important budget.

“This budget must deliver for everyone in Bradford South, promoting better health outcomes, better jobs, and a strong and secure future for us all.”