Budget aiming to get voters back at both ends of M4

Why you need to watch the Budget very closely - not everything announced will affect you directly if you live in Wales, as political editor Ruth Mosalski reports

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AT LUNCHTIME today chancellor Rachel Reeves will take to her feet in the House of Commons ready to announce a Budget for which there is almost unprecedented attention.

The Budget is a statement made by the Chancellor to MPs, and voters, presenting the Government's plans for the economy including changes to taxation and spending.

There is so much interest in this one because of Labour's polling performance.

At a UK level, both Ms Reeves and Prime Minister Keir Starmer are under pressure due to unhappiness from voters.

In Wales, Labour, which has been in power in the 26 years of devolved politics, is under serious threat as voters move away from the party.

People at both ends of the M4 hope this Budget will get voters back on side at a crucial time.

Exactly what she will announce is unclear but the Treasury has been giving some indication of what we can expect to see ahead of the big event.

In a Welsh context it is important to remember that some areas are devolved, meaning they are decided by Welsh Government, while some are reserved and thus decided by the UK Government.

So if Ms Reeves makes a health announcement, for example, that will not have an impact in Wales because health is devolved.

But if a decision is made which affects England then Wales will get a financial knock-on via the Barnett formula.

The budgets for the devolved countries in the UK (Scotland, Wales, and Northern Ireland) are primarily funded through block grants from the UK Government, which are adjusted annually based on the Barnett formula.

This formula is intended to provide the same pounds-per-person change in funding as changes to government spending on comparable services in England.

What announcements are we expecting and which will affect Wales?

Milkshake tax

A so-called milkshake tax was announced on Tuesday ahead of the Budget.