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Rachel Reeves to outline tax and spending changes in Budget
- On Wednesday, Chancellor Rachel Reeves will use her second Budget to introduce measures tackling the cost-of-living crisis and adopt a 'smorgasbord' of tax changes to fill the public finances gap.
- Amid a downgrade in growth forecasts, Reeves cites a lower productivity growth forecast, U-turns on winter fuel allowance and benefits cuts, and 'heightened global uncertainty' for the fiscal shortfall while vowing to reduce Government debt costs and increase borrowing leeway.
- Among specific measures, the package includes a 4.1% rise to the national living wage to 12.71 and extends the income tax threshold freeze to raise about £8bn, while scrapping the two-child benefits cap at an estimated cost of up to £3.5 billion.
- The package delivers immediate gains such as a £550 increase in the state pension for 13 million eligible pensioners, while Opposition parties say extending the income tax threshold freeze will hurt working people.
- For the longer term, Reeves says she will 'push ahead with the biggest drive for growth in a generation', investing in infrastructure, housing, security, defence, education and skills while increasing fiscal headroom via tax rises.
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UK unveils tax-raising budget as growth downgraded
Britain's centre-left Labour government unveiled a tax-raising budget Wednesday to curb debt and fund public services, and said the country would grow less than expected over the coming years. Ahead of the budget, Prime Minister Keir Starmer vowed to reduce National Health Service waiting times and ease a prolonged cost-of-living crisis, hoping to strengthen Labour's appeal as hard-right Reform UK gains momentum in the polls. Finance minister Ra…
·London, United Kingdom
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Total News Sources122
Leaning Left16Leaning Right10Center35Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
L 26%
C 57%
R 17%
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