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Middle-income earners brace for impact of Chancellor Rachel Reeves’ Budget | UK News
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Middle-income earners brace for impact of Chancellor Rachel Reeves’ Budget | UK News

In Grimsby, teacher Karen Bacon is feeling frustrated with the budget.

While minimum wage workers welcome a 6.7% wage increase, middle-income earners are less than impressed.

Chancellor Rachel Reeves’ promise not to hurt their pay slips by increasing income tax is welcome, but it does not ease their financial pressures.

“I’m struggling, really struggling,” Ms Bacon told Sky News. “As a family, we talked about Christmas this year. What we’re not going to do, rather than what we’re going to do. Because we’re all struggling.”

Follow live: Experts react to Labour’s ‘massive’ tax plans

She is also unsure of Labor’s commitment that it is on the side of workers.

“Even though the government says they are, I don’t know if they really are,” she added. “I think the middlemen are often overlooked.”

Karen Bacon
Picture:
Karen Bacon

The teacher is, however, ready to give the government time. “It is unfair to blame this government and say it is responsible… because we need to see what it is implementing and its effects.”

In Essex, every household cost is listed in Chris Matthewman’s spreadsheet. He is now considering the impact of the budget on his finances.

Chris and Tracey Matthewman
Picture:
Chris and Tracey Matthewman

He has a good income in Basildon, as does his partner Tracey, but with three children they feel the pressure every month.

After watching that of the chancellor announcement, he told Sky News: “Nothing has changed.

“We are exactly the same as yesterday.”

More from Sky News:
Budget calculator: how will it impact you?
The Chancellor’s main announcements
Analysis: Labor failed to keep its promises

Another decision of the chancellor is maintain the freeze on fuel taxes – a decision Ms Reeves said she made specifically with workers in mind. But those I talk to don’t think they’ll notice.

Tracey said: “I don’t know if I expected more, but we’ll just have to keep going.

“We’re going to start tinkering with the spreadsheet again and see what we can save each month.”