Wales’ first minister has called for the wealthiest to be taxed more as the Treasury considers how to deal with the fallout of the Commons welfare rebellion.
Labour pulled back from significant cuts to disability benefit on Tuesday as government ministers feared a humiliating defeat.
It has led to speculation that taxes will have to rise after potential savings of £5bn were either delayed or entirely lost.
Morgan told Wales that the chancellor Rachel Reeves is “trying to fill a £20bn black hole that was left by the Conservatives”.
“There is a price to pay for that. The question is who is going to pay that price?
“You’ve got to get the balance right. Personally I think the people with the broader shoulders should be asked to carry more of the burden.”
She appeared to be talking about the UK government, rather than the Welsh government’s own tax powers.
Morgan said had no idea what the reason was for the Chancellor Rachel Reeves’ tears in the Commons on Wednesday.
“What I do know is that politicians are under immense pressure all the time,” she said.
The first minister was asked if she thought the chancellor’s position was tenable and whether she should remain in post.
She did not give an answer directly, but said: “I think it is clear that the markets… are giving a signal which is, look, actually they have confidence in her.”
In an interview on Thursday, Reeves said she had been dealing with a “personal issue” and had a “tough day”.
Ministers in the Welsh government were among the voices in the Labour party that had lobbied against the welfare changes. The planned cuts to disability benefit have now been delayed to the outcome of a review.
The first minister said she was “glad the UK Labour party has listened to the concerns of people who were really worried about how the changes might have impacted them”.
Meanwhile on Thursday, Plaid Cymru MP Ann Davies and MS Sioned Williams called again for a Wales-specific impact assessment on the delayed changes to personal independence payments (PIP) and the still planned cuts to the health element of universal credit.
They said people across Wales were “confused and frustrated”.
“People need transparency and certainty about how these changes will affect their lives.”
‘Heat of the moment’
The first minister also responded to a watchdog report which found she failed to declare in the proceedings of the Welsh Parliament that she had received money from a trade union.
Morgan said she had “declared an interest in writing” which had been on the record “for a long time”.
“In the heat of the moment, sometimes you forget to declare an interest orally in the chamber,” she said, adding she would “take on board the comments of the commissioner”.
Morgan was taking part Ireland-Wales forum with the Irish foreign minister Simon Harris in Swansea on Thursday.
The Welsh government has signed a fresh collaboration agreement with Ireland, setting out how the two countries will collaborate on the economy, climate change, culture and a range of other issues.
It follows from a previous agreement signed in Cardiff in 2021.
Morgan said: “We’ve got a renewal of a relationship with Ireland. We’ve had a five year partnership, and we’re opening the next chapter.”
