Sir Grant Shapps criticises ‘catastrophic’ budget after receiving knighthood

Former defence secretary Sir Grant Shapps has labelled Chancellor Rachel Reeves’s Budget “chaotically delivered” and “catastrophic”.

The former Conservative MP received a knighthood from the Princess Royal at Windsor Castle on Wednesday, just hours after Ms Reeves delivered her second Budget, which included a £26 billion tax hike.

Sir Grant, who also served as home secretary, business secretary and transport secretary in past Tory governments, also criticised the blunder of the Office for Budget Responsibility (OBR), which published full details of the Budget shortly before it was delivered.

He said: “I was getting ready to come here (to Windsor Castle), but helpfully, the OBR leaked the entire Budget in advance, so I got to hear the Budget without actually hearing the Budget.

“I’m afraid that OBR mistake is rather in line with the calamitous nature of all the chaos that surrounded the Budget for the last seven months.”

The Chancellor’s measures include a freeze on income tax thresholds, national insurance charges on salary-sacrificed pension contributions and a higher tax on dividends, property and savings income.

It also included a new charge on electric vehicles.

Sir Grant said: “I was looking at a clip of what I said before the election, that if they win, they will tax your job, they’ll tax your car, they’ll tax your pension, they’ll tax your home. And they’ve now taxed all four of those things.

“A catastrophic Budget. A chaotically delivered Budget and catastrophic for the country.”

Sir Grant served in several cabinets under four Prime Ministers and was knighted in Rishi Sunak’s resignation honours list.

He said he and the Princess Royal discussed public office when he received his knighthood, and that she remarked upon his long service as Conservative MP for Welwyn Hatfield.

Sir Grant said: “She asked how I feel about leaving public service and I said my wife is quite happy because she is seeing a bit more of me.

“The Princess Royal said I served for an enormously long time, to which I pointed out (it is) not nearly as long as she has been serving, in a much more lifelong fashion.”

The former MP represented his Hertfordshire constituency for 15 years before losing his seat to Labour MP Andrew Lewin in last year’s general election.

Sir Grant said: “It’s been an honour to serve. I do think public service is a real honour to have been involved with.

“You take a lot of knockbacks, that goes with the territory, but, fundamentally, you do it to serve the public and by and large, you’re just doing it to make the world a better place.”

He added: “It’s wonderful to receive an award like this, particularly a knighthood, and I’m very honoured and humbled to receive it.”

Others to receive an honour at Windsor Castle on Wednesday included one half of the electronic music duo Chase & Status, Will Kennard, and hospital chaplain Rev Martin Abrams, who helped comfort those affected by the July 2024 Southport stabbing.