LEDBURY'S MP feels the government has taxed work, not wealth in its budget. 

Ellie Chowns has hit out at Chancellor Rachel Reeves's first budget following Labour's general election victory in July. 

Green MP Dr Chowns, who was elected to represent North Herefordshire in Parliament for the first time in July's election, said she is concerned about the changes to National Insurance which, she feels, will make life harder for firms. 

The chancellor's budget, announced on Wednesday (October 30) saw her reveal that the amount firms will pay on their employees' National Insurance contributions will rise by 1.2 per cent from next April. 

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The current £9,100 threshold employers start paying national insurance on employees' earnings was lowered to £5,000. 

Dr Chowns added: “The Government said that politics is about choices, so I am disappointed that it has chosen to tax work, not wealth in this Budget. 

"Small and medium businesses are the backbone of our local economy, so I welcome the increase in employer’s allowance, but I am concerned that the changes to national insurance contributions will make life harder for businesses and ultimately affect employment. 

"I would have liked to see a reduction to VAT for hospitality, to give this vital sector at the heart of our local economy a much-needed boost.”

The new government also announced it would remove the £100,000 eligibility threshold for employment allowance, which will also increase from £5,000 to £10,500.

The Federation of Small Business said this decision would shield the smallest employers from the jobs tax and was 'a pro-jobs prioritisation in a tough, tax-raising budget.' 

Other key announcements from the chancellor included raising the minimum wage by 6.7 per cent. 

Anyone aged 21 and over will make £12,21 an hour from April, up from £11.44 an hour. 

Those aged 18 to 20 will get a £1.40 an hour increase in their wages, with employers now required to put at least £10 an hour in their pay packets. 

And under 18s and apprentices will make £7.55 an hour from April, up from the current hourly rate of £6.40. 

The chancellor said the government was handed a challenging inheritance and added these were difficult choices they were prepared to make to rebuild the country.