Welsh workers disproportionately hit by income tax threshold freeze

Today (Monday 1st December) Plaid Cymru’s Westminster Leader, Liz Saville Roberts MP accused the UK Government of “message manipulation” in relation to last week’s Autumn Budget. 

 

Ms Saville Roberts said that the freeze on income tax thresholds will hit Wales badly, with an estimated five times more Welsh workers being pulled into the basic rate compared with the UK as a whole. 

 

Labour are claiming that they have not broken any manifesto pledges in relation to raising headline income tax rates but analysis shows that Welsh workers will be disproportinately hit by the freeze on income tax thresholds.  

 

In the House of Commons, Liz Saville Roberts MP said she “presumed” that the UK Government consulted with the Welsh Government on these changes. She urged the Chief Secretary to the Treasury, James Murray MP to release the Labour Welsh Government’s response “specifically in relation to confidence and cost of living hit”.  

 

 

Liz Saville Roberts MP said: 

 

“I’m very interested to learn that the Chancellor is in Wales today. 

 

“Amidst all this message manipulation she leaves him to explain exactly why the continued freeze on income tax thresholds will hit Wales badly, with an estimated five times more Welsh workers pulled into the basic rate compared with the UK as a whole. 

 

“I can only presume the Treasury consulted with Labour Welsh Government - will he release their response specifically in relation to confidence and cost of living hit?” 

 

James Murray MP dismissed Ms Saville Roberts’ question and instead repeated some of the Chancellor’s announcement from the Budget that he claimed ‘benefits Wales’. 

 

- ENDS -

EDITOR’S NOTES:

Estimated five times more Welsh workers being pulled into the basic rate compared with the UK as a whole: Frozen 2: Tax Freezes, the 2-Child Limit (and what the 2025 Autumn Budget means for Wales) - Thinking Wales - Meddwl Cymru - Cardiff University 

LABOUR LACKS THE COURAGE TO TAKE BOLD ACTION FOR WALES

Liz Saville Roberts ‘disappointed’ following talks with UK Government ahead of Budget  

  

On Tuesday 11th November, Plaid Cymru’s Westminster Leader, Liz Saville Roberts MP met with the Secretary of State for Wales, Jo Stevens MP to set out Plaid Cymru’s calls ahead of the Autumn Budget later this month.  

  

The meeting was secured following Ms Saville Roberts’ request to the Secretary of State during Wales Questions (29th October) for a meeting where she asked to discuss Plaid Cymru’s proposals for a “fairer, more ambitious UK Budget – one that actually works for Wales”.  

  

Following the meeting, Ms Saville Roberts said that it was “disappointing” that the Secretary of State “seemed obsessed with constitutional matters” ahead of the budget when Plaid Cymru was “focused on tackling the cost of living and ensuring our communities the investment they deserve”.  

  

During the meeting, Plaid Cymru demanded:  

  

• Full consequential funding from HS2  

  

• Action on energy bills  

  

• Pause APR and BPR changes  

  

The classification of HS2 as an ‘England and Wales’ project is denying Wales of at least £4 billion in consequential funding based on the latest cost of the project of £80 billion. When Ms Stevens was the Shadow Secretary of State for Wales in 2022, she herself called on the UK Government to deliver the “missing £4.6 billion of rail funding for Wales” – a position on which she has since rowed back. Ms Saville Roberts called on the UK Government to provide Wales with full consequential funding from HS2.   

  

Average household energy bills in 2024–25 are £1,850, up 37% from 2021–22. Households across Wales are affected by this issue with 25% of Welsh households (340,000) in fuel poverty. A contributing factor to this is standing charges, with households in north Wales paying the highest standing charges in the UK (£255.32 a year vs. £139.80 a year in London). Plaid Cymru urged the Secretary of State for Wales to act on this to help people across Wales directly through the removal of VAT from household energy bills and address the high cost of standing charges in Wales compared to the rest of the UK.  

  

Plaid Cymru also demanded that the Secretary of State pauses the changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) until a full impact assessment of the effect on small and family businesses in Wales has been carried out. Wales stands to be among the hardest hit from these changes, with Family Business UK estimating a loss of £580 million in GVA as well as 9,715 well-paid Welsh jobs. This comes in the context of new job figures which show that Wales has seen the largest fall in employment and the biggest rise in unemployment anywhere in the UK, showing that the UK Government’s changes risk undermining the very growth that they claim to be their priority for the UK economy.  

 

Speaking after the meeting, Liz Saville Roberts MP said:  

 

“I am glad to have met with the Secretary of State for Wales today to discuss Plaid Cymru’s proposals ahead of the Autumn Budget and to demand better for the people of Wales.  

 

“Rachel Reeves told us last week that we all have a duty to “do our bit”, but families in Wales have been doing just that for over fifteen years - paying more while wages have stagnated and the cost of living has soared. It’s now time for the UK Government to do its bit to improve the lives of people across Wales.  

 

“Today, I set out Plaid Cymru’s clear and practical solutions to tackle the financial challenges facing people across Wales. From demanding the billions owed to Wales from the HS2 injustice to helping households with high energy bills, I urged the Secretary of State to stand up for Wales. However, while Plaid Cymru was focused on tackling the cost of living and ensuring our communities the investment they deserve, it was disappointing that the Secretary of State seemed obsessed with constitutional matters and political point-scoring on this critical point ahead of Labour’s second budget.  

 

“Sadly, this proved to be a performative meeting rather than an opportunity to find common ground for the benefit of all our communities.” 

 - ENDS - 

EDITOR’S NOTES:

 

The Plaid Cymru Westminster leader also called on the Secretary of State for Wales to ensure that the UK Government fully covers National Insurance Contributions costs for councils in Wales. Only 85% of the costs for local authorities are being covered in Wales, unlike English councils which are covered in full. This left the Welsh Government to partially fill the gap from its own reserves, but it could not match the full cost, leaving councils facing a £36 million shortfall.  

  

Ms Saville Roberts urged Ms Stevens to unfreeze the Local Housing Allowance. The Local Housing Allowance was re-frozen by this Labour Government but this is playing a significant role in causing and sustaining homelessness in Wales, and charities like Shelter Cymru note they are being held back by insufficient housing benefit for people trying to access and maintain a home in the private rented sector.  

  

Last week, the Chancellor delivered a speech ahead of the Autumn Budget on 26 November, outlining that we must all “do our bit” to help with the UK Government’s difficult financial situation, suggesting that Labour will break their manifesto pledge not to raise income tax. Plaid Cymru is calling on the UK Government to create a fairer taxation system with the implementation of a wealth tax, believing that those with the broadest shoulders should pay their "fair share". This would be a 2% annual tax on wealth over £10 million to bring in a revenue of £24 billion every year.  

  

Jo Stevens called for HS2 funding in 2022: Rail Infrastructure - Hansard - UK Parliament  

 

PRIME MINISTER CONSPICUOUS BY HIS ABSENCE

PMQs: ‘Why won’t the PM show his face in Caerphilly?’ – Liz Saville Roberts

 

Starmer challenged over Labour’s cuts and collapsing support ahead of Caerphilly by-election

 

During PMQs today (Wednesday 15 October) Plaid Cymru Westminster leader, Liz Saville Roberts MP challenged Keir Starmer over his reluctance to campaign in Caerphilly ahead of the by-election on 23 October.

 

A few weeks ago, the Prime Minister told the BBC that he didn’t know whether he was going to go to Caerphilly.

 

Ms Saville Roberts asked the PM what his problem was before citing the cuts to disability support and the closure of ten local libraries as reasons why he hasn’t shown his face in Caerphilly yet.

 

The Dwyfor Meirionnydd MP then asked “or the fact even the council leader resigned from the Labour party and called on people to support Plaid Cymru?”

 

In mid-September, the leader of Caerphilly council resigned from the Labour Party, calling it a "busted flush". He also expressed his support for Plaid Cymru’s candidate, Lindsay Whittle in the upcoming by-election.

 

Labour has held the seat in the Senedd since devolution began in Wales in 1999 and have won in Caerphilly in every General Election since 1918.

 

However, Labour’s support in Wales is collapsing with You Gov's latest poll showing that the 2026 Senedd election will be a two-horse race between Plaid Cymru, currently leading on 30% and Reform, closely behind on 29%.

 

 

Speaking during PMQs, Liz Saville Roberts MP said:

 

“Ahead of his party conference, the Prime Minister told the BBC he wasn’t sure whether he’d campaign in Caerphilly for the by-election on 23 October. This is an important by-election in Wales.

 

“Well, there’s just over a week to go - and he hasn’t shown his face there yet.

 

“So what’s the problem, Mr Speaker – is it his party’s decision to close ten libraries in the community, cuts to disability support or perhaps it’s the fact that even the council leader resigned from the Labour party and is calling on people to support Plaid Cymru?”

 

 

In his response, the Prime Minister said:

 

“Well, Mr Speaker she leaves out of her account that we provided £21 billion, the largest ever settlement for Wales, and what did she do? She voted against it.

 

“And while we’re on the question of money, she’s accepted figures this week that independence would cost every Welsh person £7000. They should be honest about the cost with the people of Wales of their policies.”

 

 

Following the session, Liz Saville Roberts MP said:

 

“The figures spouted by Labour about the cost of independence have already been debunked by independent analysis from the House of Commons Library. The fact that Starmer raised these dodgy figures once again during PMQs shows how desperate the Labour Party is in the run up to next year’s Senedd election.”

 

- ENDS -

TIME FOR ACTION ON COST OF LIVING

‘We were promised that things would be different under Labour, but the claim of change has failed to materialise’ - Liz Saville Roberts MP.

 

On Monday 1 September Plaid Cymru have called on the Labour UK Government to implement a number of measures as part of the Autumn 2025 budget to get to grips with the cost-of-living crisis.

As MPs return to Westminster today after the summer recess, Plaid Cymru’s Westminster Leader, Liz Saville Roberts MP says that although the cost-of-living crisis began under the Tories, “people aren’t any better off under Labour today either.”  

  

Plaid Cymru have outlined that in order to tackle this, the UK Government should:  

• Support households with the cost of energy and housing  
• Boost incomes and guarantee the basics  
• Fairly tax extreme wealth and bumper profit margins 

  

Energy and housing:

25% of households in Wales (340,000) are in fuel poverty. Current support like the Warm Homes discount has risen by only £10, while energy bills have increased by £500. Plaid Cymru is calling for energy support grants similar to the Energy Bills Support Scheme (2022/23) and targeted support for winter.

Around 70,000 households in Wales face a gap between rent and social security due to the bedroom tax and outdated Local Housing Allowance rates. Plaid Cymru urges the UK Government to scrap the bedroom tax and uprate the allowance to at least the 30th percentile of rents in Wales.

 

Income support:

Raising the personal allowance and unfreezing the basic income tax threshold would benefit the bottom 50% of taxpayers earning under £28,400. Plaid Cymru also calls for an Essentials Guarantee to ensure those on the lowest incomes can afford food, heating, and other essentials.

 

Fairer taxation:

Plaid Cymru opposes Labour’s increase in Employers National Insurance Contributions, which affects public sector recruitment, small businesses, and care homes, and is partly passed on to workers and consumers. The party urges a reversal and alternative revenue measures.

Plaid Cymru instead proposes a 2% annual wealth tax on assets over £10 million (£24 billion potential revenue) and equalising Capital Gains Tax with Income Tax (£12 billion potential revenue) to fund public services and reduce wealth inequality.

  

Plaid Cymru’s Westminster Leader, Liz Saville Roberts MP said:  

“The significant fall in living standards due to the rapid increase in the price of essential goods and services may have begun under the Tories, but people aren’t any better off under Labour today either. The increase in living costs continues to hit young people, families, and pensioners across every part of the UK.   

“But while ordinary people are struggling to make ends meet and to pay for the bare minimum such as food and housing, large corporations and the ultra-wealthy are racking up eye-watering profits. Energy network owners alone pocketed £3.9 billion in excess profits from high energy bills, money that came directly off the backs of ordinary people. And with further energy price increases expected this winter, the pressure on families and pensioners will only deepen, while those at the top continue to benefit.  

“We were promised that things would be different under Labour, but so far, the claim of 'change' has failed to materialise. Plaid Cymru has presented the UK Government with practical policies ahead of this year’s Autumn Budget that would truly get to grips with the rising living costs. These measures would provide direct support to households in our communities as well as tackle the growing wealth imbalance in the UK. It is time for those with the broadest shoulders to pay their fair share, and for communities across the UK to be given the security and support they need not only to get by, but to thrive.” 

- ENDS -