Martin Lewis spots problem with Budget and asks 'who's going to pay for it'

Martin Lewis has reacted to the Budget from Chancellor Rachel Reeves asking "who is going to pay for it?". The comments from BBC Sounds and ITV regular Mr Lewis come after a cut to beer prices and minimum wage increases.

Mr Lewis wrote on X: "The change of threshold so employers now start paying National Insurance at £5,000 not £9,100 is big. For the employers who pay it, at the new 15 per cent rate that alone's £615 increased cost per most employees per year.

"The question is where will that money come from, profits, increasing charges or reducing salaries/benefits?" Mr Lewis continued and said: "The reason I say 'for employers who pay it' is because the Employers Allowance for NI has been increased from £5,000 to £10,500 a year (so this is amount off employers NI bill) so small businesses won't pay it."

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Mr Lewis reacted to Reeves' Budget by asking "who is going to pay for it?" as Gregor Mowat, Co-CEO and Co-Founder of credit-building company, Loqbox, said: “At the Labour Party Conference, the phrase ‘That’s the Britain we’re building’ was used to justify tough decisions and spending cuts by the government. But these narratives risk sending a negative message to those seeking to take control of their financial futures, suggesting that restraint and sacrifice are burdens rather than opportunities for growth.

"Considering the government’s “painful” budget, which includes significant tax raids, it’s clear that the UK is entering a period of financial tightening. The knock-on effect on household budgets remains to be seen, but with the ongoing cost-of-living crisis, we can expect further squeezes on affordability. Now more than ever, people need to take a fresh look at their finances and take proactive, practical steps toward strengthening their financial health and building resilience against future challenges.

"Just as the government looks to long-term credit building, individuals can benefit from adopting the same mindset – whether by boosting their credit scores, setting aside savings, or cutting back on unnecessary expenses. Setting aside a small, manageable amount like £20 each month can make a significant difference over the year and help a person to accumulate valuable savings. This money can also be funnelled into modern personal finance tools that offer other benefits like improving a person’s credit profile.

"In times of economic strain, where tough choices are necessary, embracing healthy financial habits is essential. This might mean reviewing personal spending budgets, trimming non-essential expenses, and seeking out financial education resources. By taking proactive steps, households can build a more secure future, ensuring both short-term savings and long-term financial wellbeing.”