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Rachel Reeves Unveils £40 Billion Tax Hike, Raising Tax Burden to Record Levels

Oct 30, 2024, 07:25 PM

Rachel Reeves has presented a significant budget, marked by a £40 billion tax hike, which has raised the tax burden to its highest level since records began. The budget includes substantial increases in capital gains tax and stamp duty, among other measures. This move has sparked widespread debate, with critics arguing that it may backfire and affect Labour's standing with voters. The Office for Budget Responsibility (OBR) has warned that millions of working people will suffer as a result. Small businesses, still recovering from the pandemic, are expected to be hit hard, with some estimating additional costs of £5,000 a year. The budget also includes substantial spending on the NHS and schools. Markets have reacted negatively, decreasing the likelihood of an interest rate cut. Labour's budget has been described as 'radical' in contrast to previous Conservative policies, and there are concerns about whether Labour has breached its manifesto promises. Jonathan Ashworth, chief executive of Labour Together, stated that the government hopes this is the only time they need to introduce tax rises on such a scale. Rachel Reeves has vowed to be the 'iron chancellor'.