In her first budget speech Rachel Reeves laid out sweeping changes to britains tax system‚ introducing a £40bn revenue package. The Labour chancellor pointed to a £22bn deficit thats needed fixing (a problem she says was inherited from previous government)
The biggest hit falls on businesses: employer national-insurance goes up by 1‚2 percentage points to 15% starting next spring; though small companies get some help with a higher employment allowance. The tax-changes target wealthy individuals too - capital gains rates jump from today while inheritance-tax rules get stricter from 26
Here are the main changes to personal taxes:
- Non-dom status ends in spring 25
- Second-home stamp duty rises by 2%
- Private jet fees increase 50%
- Pension triple-lock stays in place
The economy looks set for modest growth - forecasts show 1‚1% expansion this year rising to 2% next year. Inflation should average 2‚5% in 24 (dropping slowly to target afterwards)
Working people get some good news: minimum wage rises to £12‚21 per hour‚ while fuel duty stays frozen. Young workers aged 18-20 see a big 16‚3% jump in their minimum pay to £10/hour
This is a changed Labour party and we will restore stability to our country again
Business faces a mixed outlook: corporation tax stays at 25% through this parliament but theres new certainty with a published tax roadmap. The chancellors message is clear - those with more will pay more while regular workers dont face extra burden