Chancellor Rachel Reeves to Deliver First Budget

Chancellor Rachel Reeves is set to deliver a budget that is expected to include significant tax hikes and cuts, with a focus on addressing a £22 billion budget deficit inherited from the Conservative government. Households are reportedly making 'panic moves' in anticipation of potential changes, including cuts to pension tax-free allowances and increases in capital gains taxes. Despite previous announcements of new freeports, Reeves will not introduce any additional ones but will support existing schemes while also planning an 'investment zone' in the East Midlands. Analysts predict that the budget will reflect painful decisions, including possible reforms to inheritance tax and other personal finance areas, potentially affecting wealth transfer. The government aims to utilize revised debt rules to free up capital for investment, although Reeves is expected to rely heavily on tax changes to manage public finances. Overall, the budget signifies a critical moment for the UK’s fiscal policy under Labour, with long-term implications for economic renewal.