UPDATE: Chancellor Rachel Reeves is set to launch the “biggest drive for growth in a generation” as she prepares to deliver her highly anticipated Budget this Wednesday. In a bold commitment, Reeves emphasized that she will not “lose control of public spending” while addressing urgent economic challenges facing the nation.
With the Budget statement scheduled for Wednesday in the House of Commons, Reeves has warned of necessary tax increases to fill a significant financial gap. She stated, “I will not return Britain to austerity, nor will I lose control of public spending with reckless borrowing,” highlighting her commitment to fiscal responsibility.
The Chancellor outlined her three key priorities: reducing the cost of living, cutting NHS waiting lists, and initiating public service reforms. These measures are crucial as the UK grapples with a rising cost-of-living crisis, which has become a pressing issue for millions of families.
In a significant announcement, Reeves confirmed that the National Living Wage will increase by 4.1% to £12.71 an hour for eligible workers aged 21 and over starting in April 2024. This pay rise is expected to benefit around 2.4 million low-paid workers, translating to an additional £900 in gross annual earnings for full-time employees.
As speculation mounts regarding the Budget, Reeves is likely to adopt a “smorgasbord” approach to raising taxes. This may include introducing a new council tax levy on expensive properties, informally dubbed a “mansion tax,” and freezing income tax thresholds, which would impact taxpayers without altering the headline rate.
Additionally, ministers have announced plans allowing regional mayors to impose taxes on overnight tourism stays, providing local governments with more tools to manage their budgets. The controversial soft drinks levy, also known as the “sugar tax,” is set to expand to include pre-packaged milkshakes and lattes, further diversifying the government’s revenue sources.
“This Budget isn’t about economic necessity, it’s about political weakness, and hardworking families are being handed the bill,”
warned shadow chancellor Sir Mel Stride, criticizing Reeves for previous tax increases totaling £40 billion. He accused her of breaking promises made to the public about tax stability and fiscal discipline.
As the clock ticks down to Wednesday’s announcement, all eyes are on Reeves and the decisions that will shape the economic landscape of the UK for years to come. The stakes are high, and the impact of her proposals will reverberate throughout the country, affecting millions of lives.
Stay tuned as we provide live updates on the Budget announcement and its immediate implications for the UK economy.
