Local politicians have reacted to today’s Budget announcement.

Brecon and Radnorshire MS James Evans called it “an attack on small and medium businesses” and said it “could spell the end of the family farm”.

He said the “tax raid” of £40 billion will hit businesses hard, which will have a knock-on effect on prices and staff.

Brecon, Radnor and Cwm Tawe MP David Chadwick said the Budget “punishes small businesses” and called it “a disaster” for family farms.

He said the Chancellor had chosen to increase taxation for small businesses which he described as “the lifeblood of the Welsh economy”.

Chancellor Rachel Reeves delivered Labour’s first Budget since 2010 today.

She announced tax rises worth £40 billion, which she says will rebuild public services and stabilise the public finances.

One of the most controversial announcements in the Budget was that employers' National Insurance contributions will rise.

Companies will pay National Insurance at 15 per cent on salaries above £5,000 from April - up from 13.8 per cent on salaries above £9,100.

This will raise an additional £25 billion a year.

“This is a tax raid of £40 billion and an attack on small and medium businesses,” said Mr Evans.

“It is these businesses that will have to find the money to pay for the increased national minimum wage, the increased National Insurance contributions, at a time when many businesses are struggling to make a profit.”

Mr Evans continued: “Labour say they are not taxing workers - but these businesses will either have to put up prices or cut back of staff - how on earth does the Chancellor think this will not impact all of us?”

The Conservative MS said that hospitality businesses will be some of the “hardest hit” and said that local businesses have told him the Budget will push them “over the cliff edge”.

Mr Chadwick said the Budget “fails to offer an ambitious vision for Wales that would mark a long-term investment in its future.”

“The Chancellor has chosen to increase taxation for the small businesses that are the lifeblood of the Welsh economy instead of taking aim at the enormous profits of the banks, oil and gas giants and big tech,” said the Lib Dem.

Mr Evans and Mr Chadwick also took issue with forthcoming changes to inheritance tax relief in relation to agricultural assets.

The Chancellor said she will extend the inheritance tax threshold freeze for a further two years to 2030.

From April 2026, the first £1 million of combined business and agricultural assets will continue to attract no inheritance tax at all, but for assets over £1 million, inheritance tax will apply with 50 per cent relief, at an effective rate of 20 per cent.

Mr Chadwick said: “The Chancellor’s Family Farm Tax risks being a death knell for local farmers who have already faced attacks on their livelihoods by the Welsh Labour Government, who have shown time and time again they have no understanding of the rural economy or the work that goes into making sure the public have food on their plates.”

Mr Evans said the changes were “huge” for Brecon and Radnroshire.

“It does not have to be a large farm to get over the £1 million threshold,” he said.

“Rachel Reeves said she wants to protect small family farms but this policy does just the opposite and I fear today’s announcement could spell the end of the family farm.”

Looking at the Welsh picture, it was announced the Welsh Government will receive an extra £1.7 billion next April, due to extra spending in England on matters devolved to Wales.

UK ministers say this will enable "substantial investment" in "schools, housing, health and social care, and transport".

The Chancellor also announced £25 million towards maintenance and safety measures for disused coal tips in Wales.