Ceredigion Preseli MP Ben Lake has warned there is “little good news for Wales” in the UK Government’s first budget since taking office and said “will still feel like austerity to many.”

In Labour’s first budget since 2010, Chancellor Rachel Reeves announced tax rises worth £40bn in the House of Commons on Wednesday, 30 October.

Among the measures that apply to Wales and the whole of the UK, the Chancellor announced that rates of income tax and National Insurance paid by employees, and of VAT, will remain unchanged but that companies will pay NI at 15 per cent on salaries above £5,000 from April, up from 13.8% on salaries above £9,100.

Income tax band thresholds are set to rise in line with inflation after 2028.

A 5p cut in fuel duty on petrol and diesel will be kept for another year and the legal minimum wage for over-21s will rise from £11.44 to £12.21 per hour from April.

The chancellor also announced an extra £6.6bn in funding for the devolved nations, including a £1.7 billion boost for Wales.

Mr Lake said the chancellor had “missed an opportunity to chart a bold new path after 14 years of austerity.”

“Labour promised two governments working together, but it appears the Welsh Government was sidelined yet again by the UK Government, as there is little good news for Wales,” he said.

“Despite promising that those with the broadest shoulders would pay their fair share, changes to employers’ National Insurance will disproportionately hit businesses employing lower paid workers, which will have an impact on people across Wales.

“Furthermore, changes to agricultural property relief will undermine the family farm model that is at the heart of Welsh agriculture.

“The uplift to Wales’ block grant will not rebalance Wales’ fiscal settlement.

“Additionally, by keeping cuts to the welfare budget planned by the Conservatives, failing to help pensioners keep warm this winter or bring an end to the two-child cap, this will still feel like austerity to many.”

Leader of the Welsh Conservatives, Andrew RT Davies MS said it was a “smash and grab” budget that “will have a devastating impact in Wales.”

“This budget is built on the back of keeping pensioners cold this winter, and the National Insurance rise will be an incredibly destructive jobs tax for Wales’ economy which is already struggling after decades of Labour rule.”