Reeves Unveils Wage Rise and £40B Tax Plan

Chancellor Rachel Reeves has unveiled a significant budget plan which includes a £40 billion tax rise, with £25 billion generated through increased National Insurance Contributions from businesses. In addition to higher taxes, businesses will face increased costs from a 6.7% rise in the National Living Wage, bringing it to £12.21 per hour in April, which is expected to benefit over three million low-paid workers. The wage increase, alongside the National Insurance hike, has led to concerns among businesses about the potential impact on hiring and investment. The government aims to boost worker incomes and align minimum wage rates across age groups, as part of their plan to establish a 'genuine living wage'. Business leaders warn that these measures could strain company finances and act as a deterrent to growth, despite government assurances of the economic benefits of a better-paid workforce. Reeves argues that the government's approach is necessary to drive economic growth through investment and enhance workers' rights.