YORK leaders have hailed today's budget as a 'strong budget' for the city's children as it will lift some of the most vulnerable out of poverty.
The Chancellor Rachel Reeves vowed that children would not be punished by a 'broken welfare system', as she presented her Budget to the Commons.
She laid out a series of tax rises to fill a black hole in the public purse as well as measures to help people struggling with living costs.
The two-child limit which restricted Universal Credit and tax credits to two children will be scrapped from April.
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York Central MP Rachael Maskell said: “This is a strong budget for children, there can be no greater ambition for Government than to lift children out of poverty, to address the inequality of their circumstances and ensure that investment is made to their life’s journey.
"In scrapping the Two Child Limit, 470,000 children will be taken out of poverty; in York Central this will bring 1,650 children out of poverty. I want to thank everyone who has supported my petitions on child poverty, including the scrapping of the cap, today we have made real progress.
“After campaigning hard for many years for a tourism tax for York, I welcome the announcement which for less than price of a cup of coffee could raise millions for our city. Likewise, the confirmation of winter fuel payments for pensioners this winter is a major campaign win for those of us who did not support the actions taken last year to remove this key benefit."
In other measures, income tax thresholds will remain frozen until 2030, pulling more earners in York and North Yorkshire into higher bands. Pension salary sacrifice will be capped at £2,000 from 2029, with excess subject to National Insurance.
A new “mansion tax” will apply to homes over £2 million, ranging from £2,500 to £7,500, with revenue going to central government.
Ms Reeves also announced taxes targeted at landlords and introduced 'permanently lower' business rates for more than 750,000 retail hospitality and leisure properties - to be paid through higher rates on properties worth more than £500,000.
Meanwhile, the new Local Growth Fund will empower York and North Yorkshire's Mayor to introduce a visitor levy on overnight accommodation to drive economic growth.
Responding to the measures, City of York Council Cllr Claire Douglas said: "The scrapping of the two-child benefit cap will lift many York children out of poverty.
"Increases in the legal minimum wage to £12.71 per hour and a 4.8 per cent increase in the basic and new state pension will help household budgets stretch further across our city just when it’s most needed.
"The announcement on the implementation of an overnight visitor tax, which we have campaigned, for is potentially transformational for York and means the millions of visitors that come to our fantastic city will fully contribute to its upkeep. I know the citizens of York have been waiting for this and it can’t come soon enough."
Drivers of electric vehicles in York will pay 3p per mile under a new road tax, while the levy on remote gaming will jump from 21% to 40%. Bingo duty will be scrapped in 2026.
Fuel duty cuts and a one-year rail fare freeze aim to ease transport costs for York's commuters. The Motability scheme will stop offering luxury cars, and the annual cash ISA limit will fall from £20,000 to £12,000 to encourage more people to invest their money in stocks and shares instead.
The OBR upgraded 2025 growth to 1.5% but downgraded subsequent years. Reeves said tax hikes will more than double fiscal headroom to £22 billion by 2029-30.
Rachael Maskell, MP, added: “After campaigning hard for many years for a tourism tax for York, I welcome the announcement which for less than price of a cup of coffee could raise millions for our city. Likewise, the confirmation of winter fuel payments for pensioners this winter is a major campaign win for those of us who did not support the actions taken last year to remove this key benefit.
“Raising the National and Living Wages will benefit working people, it will mean more money in their pockets to spend in the local economy; helping businesses and families. Pay growth under the Tories for 14 years was the worst than for any other government since the 1920s, that punishment for working people whilst the richest few became even more wealthy can never be forgotten. I will examine the detail of the freezing of the tax thresholds.
“The council tax surcharge for high-value homes is welcome, but we urgently need to fix our tax system, to get rid of loopholes that allows billionaires to pay as much tax as nurses and school teachers. 80% of millionaires and 78% of the UK public specifically support a 2% wealth tax which would raise £22bn.“
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