First Labour budget in 14 years brings major tax system changes to UK
New Labour chancellor presents a £40bn tax package targeting businesses and wealthy individuals‚ while protecting average workers. Changes affect everything from employer costs to property purchases
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
