Andy Burnham and John Healey plotting budget ‘stealth tax bonanza’ warns Richard Holden: ‘People will be hammered!’

Mr Holden said Labour was failing to explain how it will fund both a rise in welfare costs, projected to hit £32billion a year and a long-promised increase in defence spending.

“If he's going to do that, how is he going to pay for it?” the top Tory said, adding: “The only answer to that is going to be taxes, taxes, taxes.”

Yesterday, Mr Burnham told the Commons at PMQs that national security could not “come at the expense of social security”.

The Prime Minister insisted the nation's security depends on “resilience in our communities”, adding that Labour would never be “forced to choose between the two”.

Mr Holden said: “Does he actually really believe that he's going to fund our armed forces, and on the flip side, he's also going to say he's going to keep funding welfare?”

He added that the Government was “teeing up the country to come for everybody's wallet and purse”.

Richard Holden has warned that Andy Burnham and John Healey are plotting a 'stealth tax bonanza' in the upcoming Budget

PA

Among his concerns were plans to introduce new tourist taxes, giving English mayors the power to impose overnight visitor levies.

“People are going to get absolutely hammered,” he warned.

“Think about the hospitality sector and the jobs already lost in that; a huge new burden and inflationary burden on those businesses as well.”

“Labour are laying the ground for a stealth tax bonanza when it comes to the Budget in just a few weeks,” Mr Holden said.

The top Tory feared that taxpayers would be 'absolutely hammered' by the Chancellor’s economic plans

GB NEWS

What balance Mr Healey strikes between welfare and defence in his budget remains to be seen.

However, he is expected to drop his promise to meet the 2030 Nato target until a spending review next year - potentially reneging on what was a resigning issue for him as Keir Starmer’s defence secretary.

Tory leader Kemi Badenoch echoed the criticisms of her Shadow Transport Minister, accusing Labour of becoming the “welfare party”.

“For our new PM, social security - welfare - comes above national security,” she said.

“The Labour Party has become the Welfare Party. The first duty of Government is defence of the country, not paying more benefits.”

Earlier this month, the British Chambers of Commerce (BCC) urged Mr Healey not to increase levies in his upcoming budget.

“The Chancellor must use his first budget to cut the cost of doing business, allowing everyone to reap the economic benefits.

“Piling more taxes on firms would be a road to ruin, and the quickest way to destroy business confidence,” BCC director general Shevaun Haviland said.