Budget Joy in food bank network - but business chief hits out at rising costs

Reeves’ Budget was met with mixed reactions in Bristol yesterday.

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Chancellor of the Exchequer Rachel Reeves delivering her Budget in the House of Commons yesterday

Among the key measures were a ‘mansion tax, the end of the two-child benefit limit, freezes to income tax thresholds, new levies on the gambling industry, and a freeze to fuel duty.

With an apparent focus on appealing to her party’s base, it might have been expected to go down well in a city which voted in large numbers for Labour in 2024 - but naturally not all were happy.

Among the most pleased were those working with Bristol's network of food banks who welcomed the Chancellor's decision to scrap the two-child benefit limit.

Eleni Morus, organiser at Bristol North West Foodbank, said: “This decision will come as an enormous relief to families who have been pushed into hardship simply because they have more than two children. Around two in every five food parcels we give out go to children, so we are looking forward to seeing the impact lifting the cap will have and hopefully seeing fewer people walking in through the doors of the food bank”

She added: “The reaction from the food bank network today has been joyful, as we know what a great impact this will have on the families we support. This will not end poverty overnight but it represents a step in the right direction in making sure that everyone is able to afford life’s essentials.”

As well as attempting to keep her party onside the Chancellor was attempting to plug the black hole in Britain’s finances.

Among the announcements, she confirmed the minimum wage would be increased by 4.1% from April, with a 6%-8.5% rise for younger workers. And she also announced a £2,000 cap on salary sacrifice schemes that pay into a pension.

“This is a tax-raising budget from a Chancellor under pressure,’ said Phil Smith, managing director of South West chamber Business West.