Summary
The UK government announced a new Budget that focuses on raising taxes and increasing spending. The chancellor, Rachel Reeves, highlighted several measures including removing the two-child benefit limit and increasing free school meals. The government aims for the Budget to be appealing to financial markets, the public, and Labour Party members.
Key Facts
- The Budget involves significant tax increases and more spending.
- The Institute for Fiscal Studies states these tax rises are the largest since at least 1970.
- The government plans to remove the two-child limit on Universal Credit.
- Removing the two-child limit is expected to lift 450,000 to 550,000 children out of poverty.
- Labour MPs in the House of Commons generally support the Budget.
- The government wants the Budget to appeal to financial markets, the public, and Labour members.
- The chancellor aims to provide financial market reassurance by operating with more fiscal room.
- The Office for Budget Responsibility will now evaluate the government's financial rules once a year instead of twice.
