Reeves revealed a historic tax increase, aiming to fix public finances and restore services
Chancellor Rachel Reeves has announced a £40 billion tax increase in the first Labour budget since 2010
The budget aims to address a significant "black hole" in public finances left by the Conservatives
Key measures include a £25 billion increase in employers' national insurance contributions and hikes in capital gains tax and tobacco duty
The budget also outlines an increase in the stamp duty surcharge for second homes and the soft drinks industry levy, while maintaining a freeze on fuel duty
Improvements in the carers allowance and a commitment to invest over £5 billion in housing and infrastructure are included
Chancellor Rachel Reeves has unveiled an Autumn Budget that will raise taxes by £40 billion, pledging to “fix the foundations” of the economy and restore public finances.
It marked the first Labour budget since 2010 and the first ever presented by a woman, as Reeves emphasised the need to “invest, invest, invest.”
But the Chancellor also said that the “black hole” left by the Conservatives necessitates tens of billions in additional tax revenue.
Reeves added that the extent of the public spending issues she inherited is more severe than previously anticipated.
She said the £22 billion “black hole” left by the Tories in this year’s finances showed they “hid the reality of their public spending plans”, with problems recurring in future years.
But what does it all mean for you, and will the Budget lead to “more pounds in peoples’ pockets”, as claimed by Reeves?
Chancellor Rachel Reeves has announced a £40 billion tax increase in the first Labour budget since 2010
The budget aims to address a significant "black hole" in public finances left by the Conservatives
Key measures include a £25 billion increase in employers' national insurance contributions and hikes in capital gains tax and tobacco duty
The budget also outlines an increase in the stamp duty surcharge for second homes and the soft drinks industry levy, while maintaining a freeze on fuel duty
Improvements in the carers allowance and a commitment to invest over £5 billion in housing and infrastructure are included
Chancellor Rachel Reeves has unveiled an Autumn Budget that will raise taxes by £40 billion, pledging to “fix the foundations” of the economy and restore public finances.
It marked the first Labour budget since 2010 and the first ever presented by a woman, as Reeves emphasised the need to “invest, invest, invest.”
But the Chancellor also said that the “black hole” left by the Conservatives necessitates tens of billions in additional tax revenue.
Reeves added that the extent of the public spending issues she inherited is more severe than previously anticipated.
She said the £22 billion “black hole” left by the Tories in this year’s finances showed they “hid the reality of their public spending plans”, with problems recurring in future years.
But what does it all mean for you, and will the Budget lead to “more pounds in peoples’ pockets”, as claimed by Reeves?
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NewsTranscript
00:00UK's first female chancellor, Rachel Reeves, has announced this year's budget, Budget 2024,
00:07which means national minimum wage will rise in April. National insurance contributions will also
00:14rise. We've been out and about in Yorkshire asking how the budget will impact you.
00:21What do you feel about national insurance contributions going up?
00:26It's another killer, isn't it? You know, just add to the pot and stretch the elastic band and
00:31it's going to snap at some point. And everybody in the industry is feeling it, it's not just
00:35ourselves. It's going to be a tough road ahead, yeah. I think the budget will impact me
00:43probably in food shopping prices going higher and I don't like that they've taken away the winter
00:53fuel allowance for the elderly. I think it's cruel, yeah.
00:58How do you feel the budget will impact you? I don't really take much notice of it, to be fair.
01:05Are you bothered about minimum wages going up or national insurance contributions?
01:12I'm not sure about all the taxes going up. How do you feel the budget will impact you?
01:16Firstly, I think it'll just be the winter payment for the pensioners.
01:20What do you think about the national minimum wage rising?
01:24Well, I think it's a good thing. It's going to cost companies a lot more money,
01:30but I think they're taking Robin Peter to pay Paul all the way through. And they're
01:36hitting the wrong people, they're hitting the rich, the high tax earners.
01:39How do you feel about the rise to national minimum wages?
01:43It's a massive stretch on our industry. We don't know when to staff people anymore.
01:49We don't know when the places will be busy or quiet. But ultimately, any increase will
01:56increase inflation at the moment. It's just a killer for all our business.