UK devolved governments seek urgent meeting with Chancellor after tax-cutting mini-budget

The Welsh Government has requested an “urgent” meeting with UK Chancellor after his tax-cutting mini-budget threw the financial markets into turmoil.

The UK devolved governments are seeking a meeting with Kwasi Kwarteng to discuss immediate action to reverse the damaging effects of the mini-budget.

Finance Minister Rebecca Evans is joined by Finance Ministers from Scotland and Northern Ireland in highlighting the profound impact of “the largest set of unfunded tax cuts for the rich in over 50 years” stating it is “a huge gamble on public finances and the health of our economy”

In a joint letter, they warn against being “condemned” to another decade of austerity and express deep concern over reports that UK Government departments will be asked to make spending cuts to balance the budget, which may have profound consequences for devolved budget settlements already eroded by inflation.

The Ministers also renew calls for the UK Government to provide targeted support for households and businesses, funded through a windfall tax on the energy sector.

They also call for additional funding to increase Social Security benefits to support low income households with the higher costs they will face through winter, including a £25 per week uplift for Universal Credit and legacy benefits.

By abolishing the 45p additional rate of income tax the UK Government has shown its true colours. This will make the rich richer and further embed inequality in our communities.

The letter said: “The UK Government has chosen to make things significantly worse by announcing a huge package of tax cuts for the most wealthy without any credible explanation of how these will be paid for.

“Urgent action is required now to address the issues facing our economy, public services and households across the country.

“Such action cannot wait until the update you have announced will take place in November.”

It added: “With the crisis deepening and the prospects for the economy deteriorating by the day, it is essential that you take action to reverse the damage these policies are causing, for the benefit of all parts of the UK.

“We also seek an urgent quadrilateral meeting with you to discuss this further.”