Labour Budget Faces Backlash Over Tax Increases

Rachel Reeves, the UK's finance minister, has introduced Labour's first budget in 14 years, which includes a record £40 billion tax increase primarily affecting businesses and the wealthy. The budget aims to raise an additional £25 billion through increased National Insurance Contributions from employers and changes to capital gains and inheritance taxes. While Reeves claims the measures will restore stability and allow significant investment in public services, critics argue the budget will burden businesses, potentially lead to job losses, and increase inflation. Additional fiscal changes allow for more government borrowing, purportedly to support infrastructure and social services. The budget has faced backlash for breaking election promises of minimal tax increases and for potentially undermining economic growth. Despite this, Reeves maintains the tax hikes are necessary to address the economic challenges inherited from the previous Conservative administration.