Dr Neil Shastri-Hurst MP has criticised the Burnham Government's first Budget, describing it as a "tax raid" on savers and accusing ministers of delaying decisions on welfare reform and defence spending.

Chancellor John Healey announced a further two percentage point increase in tax rates on property and savings income from April, on top of the two-percentage point rise previously announced by Rachel Reeves.

The surcharge on bank profits will also double from 3% to 6% for 15 months.

The Office for Budget Responsibility forecasts that welfare spending will rise from £333.8 billion last year to £431.3 billion in 2031–32, an increase of almost 30%.

Dr Shastri-Hurst criticised the Government for deferring welfare reform until next year and failing to commit to spending 3% of GDP on defence.

He said: "This is a Budget of delay. The Government is deferring decisions on the most pressing issues facing Britain, while asking savers, renters, and working people to pay more.

"The Chancellor has announced a £4.3 billion tax raid while deferring any meaningful welfare reform until next year, even as welfare spending heads towards £431.3 billion.

"Doubling the surcharge on bank profits also risks being passed on to mortgage holders through higher borrowing costs, hitting hardworking Britons again."

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He also criticised the lack of a commitment to spend 3% of GDP on defence, saying defence spending was the issue over which he resigned from the previous Starmer Government.

The MP added that forecasts showed no real earnings growth in 2027 or 2028, while the growth forecast for next year had been downgraded to 1%.

He said: "Britain needs action to control spending and get growth going. Instead, this Budget raises taxes today and leaves the big decisions for tomorrow."