Summary
British Chancellor Rachel Reeves announced a new budget, including significant tax increases to raise funds for government finances by 2030. The budget plans to freeze income tax thresholds, meaning more people will pay higher taxes as their earnings grow with inflation. Despite breaking a previous promise not to raise taxes, Reeves claims these measures will help reduce government borrowing and avoid austerity.
Key Facts
- The UK budget features tax hikes projected to raise 26.1 billion pounds ($34.4bn) by 2030.
- The tax increase involves freezing income tax thresholds, affecting many as their incomes rise.
- The move will bring 780,000 new people into paying basic-rate income tax by 2029-2030.
- An error occurred when the UK's economic outlook was released before the official budget announcement.
- Government borrowing will decrease each year, aiming for a budget surplus by 2030.
- The budget promises no return to austerity and continues investment in public services like the National Health Service.
