'I don't have high hopes': Wolverhampton residents react as Chancellor Rachel Reeves announces tax rises and scrapping of two-child benefit cap

On Wednesday at 12.30pm, Chancellor of the Exchequer Rachel Reeves announced her second Budget, leaving many residents of Wolverhampton with split opinions. 

For her Autumn Budget 2025, Chancellor Reeves made promises for the economical and educational growth of the nation through tax increases, 'permanently lower' business rates, and promises of libraries in primary schools across the country. 

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However, the Budget also brought the controversial scrapping of the two-child benefit cap, upcoming pensions and salary sacrifices, and an electric vehicle tax. 

The budget was received with mixed opinions from many people around the Black Country, with some praising the raising of important issues such as defence spending and the increase of NHS health centres; however, many were also left uneasy, with a few saying it would now be 'more profitable' to have more children than work.

In response to the mixed-bag Budget announcement, we visited the Wolverhampton village of Tettenhall to see what residents thought of the future plans for the nation's finances. 

'Why should I even work?'

Rachel Harrison, 29, a married mother of one, from Wolverhampton, said that with the two-child cap benefit removed, she would make more money by living on benefits than working in her retail job. 

She said: "I only read about it, but I got hung up on the child-tax cap, to be honest. It's insane. Why should we have to pay for someone who has lots of children?

"And my partner decided on only one child because we couldn't afford more than two. But this is telling me that I could have five children and earn more money than I'm making in retail. Why should I even work?"

'I don't have high hopes'

Many were left feeling split over the bold promises made in the Budget, with plenty praising the addressing of key issues, but many more asking, 'Where will the money really come from?'

Margaret Moore, retired, from Tettenhall, said: "I really don't have high hopes. The minimum wage is okay; people will have more money. But it will be a calamity for those who own small businesses.

"And with the pensions. I'm struggling now. It's going to be worse for those now that there is a cap on how much you can pay into your pension scheme.

"Someone's got to pay for all these promises."

'We need more libraries'

Some residents praised Councillor Reeve's promise to 'provide every primary school with a library', saying that education in the country 'needs sorting out'.

Valarie Garner, 65, of Wolverhampton, said: "I'm really hopeful to be honest. I used to be a teacher; there are plenty of schools around now that don't have in-house libraries. 

"Children need to be reading at an early age. It's a central skill. In-house libraries make it more approachable for children to get into it. They are the future; they need to be educated to the best they can be."