Summary
Rachel Reeves announced a Budget with £26 billion in tax increases to address the UK’s cost of living issues. The plan includes freezing tax thresholds, new taxes on properties and savings, and other smaller tax changes. The UK’s tax revenue is expected to reach a record level by 2030, and the economy is projected to grow slower than previously thought.
Key Facts
- The UK chancellor announced £26 billion in tax hikes.
- Tax thresholds will be frozen for three more years, increasing taxes for many people.
- New annual charges will apply to homes valued over £2 million starting in 2028.
- A 3p per mile new tax is planned for electric cars, and 1.5p per mile for plug-in hybrids.
- Online betting shops will see tax duty increase from 15% to 25%.
- A cap of £2,000 per year on salary sacrifice pensions will be introduced.
- The UK's tax revenue is projected to rise to 38% of national income by 2030-31.
- The UK economy is expected to grow at a slower rate than previously forecast.
