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Budget Analysis: Chancellor Chooses to Tax Big and Spend Big
Chancellor Reeves increases taxes by £26 billion and freezes thresholds to boost welfare, while a budget leak preceded the announcement.
- On Wednesday, Rachel Reeves, Chancellor, delivered a Budget that raised tax by £26 billion and was overshadowed by an unprecedented Office for Budget Responsibility leak before her speech.
- Facing downgraded forecasts, Reeves expanded headroom against fiscal rules and accepted delaying the fiscal repair job for three years to address weaker economic forecasts.
- Policy details include new targeted levies such as a pay-per-mile charge for electric vehicles, higher online betting taxes and a `mansion tax` on homes over £2 million, while Reeves froze tax thresholds until 2030/31 and levied national insurance on some pension contributions.
- Household impacts include benefits like lifting 450,000 children out of poverty and energy bill cuts of around £130 annually, despite warnings from the OBR and IFS.
- The OBR has apologised for a technical error and launched an investigation led by Richard Hughes, while the IFS and Resolution Foundation prepared verdicts and Kemi Badenoch called the Budget a `total humiliation`.
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Chancellor to face more questions after Budget overshadowed by major leak
The Chancellor’s decisions put Britain on course for a record tax burden as she hiked levies. Rachel Reeves will face further questions after delivering a Budget that raised tax by £26 billion but was overshadowed by an unprecedented leak. The Chancellor’s decisions put Britain on course for a record tax burden as she hiked levies after weaker economic forecasts left holes in her previous spending plans. The increases are also needed to pay for …
Coverage Details
Total News Sources9
Leaning Left3Leaning Right1Center2Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 33%
R 17%
Factuality
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