Welsh Lib Dems call on Chancellor to tax big banks to fund a fair deal for Wales ahead of UK Budget

The Welsh Liberal Democrats have set out their key Budget priorities, with Westminster Spokesperson David Chadwick MP calling for a Budget that genuinely delivers for Wales by securing a fairer settlement for Welsh communities, funded by increasing taxes on major banks, global tech giants, online gambling operators and oil and gas producers.

To support the economy and help households with the cost of living, the Party is calling for a 17-month emergency “Households and High Streets” package to cut energy bills and support local pubs, cafés and restaurants, putting £270 back into the pocket of a typical household. The plan would remove a levy from energy bills and cut VAT for hospitality, giving families immediate relief and helping high streets through their toughest months. The entire package would be fully paid for by a time-limited windfall tax on the big banks, bringing down inflation while protecting jobs and easing pressure on struggling businesses.

Pubs, cafés, restaurants and tourism employers across Wales continue to face rising costs and weaker demand. The Welsh Liberal Democrats argue that a VAT reduction would provide immediate relief and protect jobs, noting that hospitality and tourism make up around 12% of the entire Welsh economy and are central to rural and coastal communities.

Other key measures the Party is calling for in the Budget include:

• Axing the Family Farms Tax, warning that proposed changes to Agricultural Property Relief will place further strain on small and family-run farms already facing rising costs and uncertainty — with damaging consequences for rural economies, supply chains and the communities that depend on them.
• Large-scale investment in hydro and tidal power, such as the Swansea Bay Tidal Lagoon, which has been promised repeatedly by successive governments but never delivered. The Party argues that tidal lagoons would create skilled jobs and provide reliable, home-grown clean energy if the UK Government finally commits to them.
• Fair funding for Wales through reform of the Barnett Formula, devolution of the Crown Estate and the delivery of long-overdue HS2 consequentials, highlighting that Wales deserves fair treatment after years of structural underfunding.
• Fair access to pensions for the roughly 4,000 Welsh miners who are members of the British Coal Staff Superannuation Scheme (BCSSS).
• The scrapping of the two-child benefit cap as a first step towards reducing unacceptably high levels of child poverty in Wales.
• Greater funding for social care.

To fund these priorities, the Party is calling on the Chancellor to reverse the Conservatives’ tax cuts for big banks, increase the Digital Services Tax on multinational tech giants, strengthen the windfall tax on excess oil and gas profits and raise Remote Gaming Duty on large online gambling firms whose profits have soared during the cost-of-living crisis.

Commenting, Welsh Liberal Democrat Westminster Spokesperson David Chadwick MP said:

“This Labour Government has presided over a series of decisions that have harmed Welsh communities. This Budget is an opportunity for them to change course and finally show that Wales matters.

“The Liberal Democrats have been clear and consistent in calling for those with the broadest shoulders to pay their fair share. The Chancellor should be taxing big banks, tech giants and oil companies fairly, instead of placing the burden on working people. That revenue must be used to support the communities that need it most.

“The Welsh Liberal Democrats will continue to ensure the voices of Welsh communities are heard in the halls of Westminster.”

ENDS