LABOUR'S election campaign was "built on a lie" claims a leading city Conservative amid criticism of the National Insurance rise.

Chair of Worcester Conservatives Marc Bayliss has hit out at the autumn Budget during which National Insurance hikes were announced.

Chancellor Rachel Reeves has since said she was “wrong” when she said during the election campaign that she would not need to raise taxes.

During a campaign event on June 11, Ms Reeves said she would not need to raise taxes beyond the increases already set out in the Labour Party’s manifesto.

But delivering her first Budget, she announced £40 billion of tax rises, including increases to employers’ national insurance contributions.

Councillor Marc Bayliss, chair of the Worcester Conservatives, accused the party of lying to voters.

He said: "It shows Labour lied during the election when they said their manifesto was fully costed.

"Their whole election campaign was built on a lie.

"We said it at the time and we've been proven right."

Ms Reeves said that national insurance contributions for employers will increase by 1.2 per cent to 15 per cent from April 2025, which will raise £25 billion each year.

Minimum wage is also set to rise by 6.7 per cent for people aged over 21 and by 16.3 per cent for people aged between 18 and 20.

Cllr Bayliss claims this raise will have the opposite effect as it is intended to: "I've had lots of people who run small businesses contact me as these increases are massively above inflation.

"It will lead to lower growth and higher inflation and I think it will cause an increase in unemployment."

Tom Collins was contacted for a comment but was unavailable.

Lynn Denham, leader of Worcester City Council, said: "As a result of the 14 years of Tory Government, the disastrous Truss budget and Sunak's unfinanced promises, Labour have inherited the worst financial situation imaginable.

"Our public services are on their knees."

Cllr Bayliss was also upset at the new inheritance tax changes which will see farms and other business property now taxed at 20 per cent of their value above £1 million, as opposed to the current laws that make them tax-exempt

He said: "The attack on farmers is entirely unnecessary.

"Farmers are asset-rich but income-poor.

"Labour are going to screw them to the floor."

Cllr Denham said: "From my understanding, this will not affect the majority of working farmers, but only the very largest land owners.

"Exemption for inheritance tax was brought in by the Conservatives in 1992 for working farmers.

"Since then, it has been misused as a way to avoid paying towards our public services."