Chancellor Rachel Reeves has presented the most significant tax-raising Budget since 1993, introducing a £40 billion tax increase aimed at revitalizing public services. This historic Budget, Labour’s first since 2010, includes investments in the NHS, education, housing, and transport, as well as pledges to end austerity while managing a £22 billion financial shortfall.
Reeves, the UK’s first female chancellor, committed to preserving taxes on income, VAT, and national insurance for workers, instead raising business taxes, including capital gains and employer contributions. She also removed VAT exemptions for private schools to fund state education.
Critics, including Rishi Sunak, denounced the Budget as “anti-business,” accusing Reeves of heavy borrowing without a growth strategy. Among other measures, the chancellor raised the minimum wage, invested in housing, and extended support for the NHS. Further investments will fund HS2, Trans-Pennine upgrades, and local transport projects, with £500 million allocated to repair potholes.