Chancellor Reeves's 'Budget for Strivers' to Raise £40bn Taxes, Invest in Schools, Childcare, and Roads

Oct 28, 2024, 07:03 AM

UK Chancellor Rachel Reeves is set to deliver her first Budget on Wednesday, aiming to raise up to £40 billion in additional taxes to stabilize the economy and invest in public services. The Budget, which Reeves describes as a 'Budget for strivers,' is expected to include £1.4 billion to rebuild crumbling schools, £1.8 billion to expand government-funded childcare—including a tripling of investment in free breakfast clubs—and £500 million earmarked for fixing roads, bringing total spending on mending highways to £1.6 billion over the next year. Prime Minister Keir Starmer has prepared the public for 'tough decisions' and the 'harsh light of fiscal reality,' emphasizing that tax rises are necessary to prevent devastating austerity and rebuild public services. The government remains committed to not increasing VAT, National Insurance, or Income Tax for working people, and intends to keep promises made to them. The Budget will also include a crackdown on tax avoidance and evasion, expected to raise £6.5 billion annually, and £240 million will be allocated to provide local services to help people back into work. Notably, this will be the first Budget delivered by a woman. Starmer insists that tough choices are required given the unprecedented economic challenges.