Rachel Reeves’ Jobs Tax “Wreaking Havoc” as Welsh Unemployment Jumps for Second Quarter Running

Responding to the latest Welsh Labour Market Overview for December 2025, which shows unemployment in Wales has risen to 6.1%, up a staggering 1.4 percentage points in just one quarter, Welsh Liberal Democrat Westminster Spokesperson David Chadwick MP said:

“Small businesses across Wales warned Rachel Reeves that hiking National Insurance would freeze recruitment and cost jobs. Those warnings were ignored and the consequences are now painfully clear.

“The Chancellor’s jobs tax is wreaking havoc on the Welsh economy, punishing employers for taking people on and leaving communities to pay the price.

“Rachel Reeves cannot keep pretending this is a coincidence. The writing is on the wall, her tax hike is strangling job creation and pushing Wales in the wrong direction.

“If the Labour Government wants to halt this downward spiral, it must urgently reverse the National Insurance increase and deliver real support for small businesses, including the Liberal Democrats’ call for an emergency VAT cut for hospitality and tourism.”

ENDS