Chancellor Reeves Unveils Historic £40 Billion Tax Hike

In her debut budget, UK Chancellor Rachel Reeves announced a significant increase in taxes amounting to £40 billion annually, focusing on addressing the public finance gap and investing in the NHS and other public services. This budget marks the Labour Party's first since regaining power, introducing the highest tax burden in decades with increased employer national insurance contributions and higher taxes on capital gains and inheritance. Despite critiques, Reeves insists these measures are crucial for rebuilding the economy and supporting public services, including an additional £25 billion for the NHS. Meanwhile, the defense budget received a £3 billion boost, though the commitment to raise spending to 2.5% of GDP remains postponed. Public response is mixed, with middle-income earners expressing concerns over financial pressures and skepticism about Labour's promise to protect the working class. Nonetheless, the budget aims to restore stability and growth after years of Conservative governance.