Rachel Reeves' uncle brands niece's Budget as 'the worst I've ever seen'

Terry Smith, 73, joined a number of opponents after the Chancellor announced a £30 billion package of tax rises.

Critics claimed the Chancellor made the "wrong choices" in her Budget by hiking taxes alongside increased welfare spending, and that people should consider their finances when deciding the size of their family.

Mr Smith, whose sister Sally is Ms Reeves’ mother, publicly criticised the Budget, he told The Sun: “It is going to cost the working class billions of pounds and leave the country worse off.

“It’s the worst Budget I’ve ever heard - and I’m 73, so I have been around for quite a few.

“Rachel is my niece and is a lovely person, but government is totally out of their depth.”

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The Government believes lifting the limit will pull 450,000 children out of poverty, which it argues will ultimately help reduce costs by preventing knock-on issues like poor health, dependency on welfare, or people struggling to find a decent job.

Reports last night suggested Labour may seek to ease tensions with businesses by revisiting some planned employment-rights reforms, including proposals allowing employees to bring unfair-dismissal claims from their first day in a job.

Mr Smith added: “This Budget is there to help people that don’t really want to work.

“I know people in Manchester with three or four children who are just going to have more as the state will reward them.

“If they can have another child and get more money, that’s exactly what they’ll do.”

He also praised his niece’s historic appointment as the first female Chancellor, noting her academic background in philosophy, politics and economics at Oxford.

However, he added: “I don’t think she had the qualifications or the experience to be Chancellor.”

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Tax levels will rise to their highest in modern history, and Ms Reeves indicated that further increases may be necessary.

In response, the Office for Budget Responsibility lowered its growth forecast for next year from 1.9 per cent to 1.4 per cent, predicting growth of only 1.5 per cent by 2029.

Tory shadow chancellor Mel Stride said keeping the cap was the "responsible" thing to do, describing Ms Reeves' autumn statement as a "Budget for welfare, not work."

The change means families, from April 2026, can receive the child element of UC for all children regardless of family size.

The OBR said it will lead to an estimated 560,000 families seeing an increase in their UC award averaging £5,310 per year.

Alison Garnham, chief executive, Child Poverty Action Group, said the decision "will strengthen our nation" while chief executive of the Children's Society, Mark Russell, hailed a "game-changing moment for children".

Dan Paskins, executive director of UK impact at Save the Children UK, said: "The Government is right to recognise that children have paid the price of a poorly thought-out policy for far too long.

"We warmly welcome this momentous change and the leadership that the Prime Minister and Chancellor are showing."