Chancellor Rachel Reeves Unveils Controversial Budget

Chancellor Rachel Reeves has announced a record £41.5 billion in tax increases by 2029-30, primarily through higher employer National Insurance contributions, which the Office for Budget Responsibility (OBR) warns will burden workers with significant long-term costs. The OBR predicts that 80% of the tax increase will ultimately impact employees through lower wages and higher prices, with the burden on workers expected to increase to 76% by the following year. Despite these tax hikes, Reeves defended her budget, asserting it would protect those who work and challenge the opposition to suggest alternative paths. The Budget's implications extend to pensioners, as Labour plans to scrap winter fuel payments for 10 million retirees, with potential further cuts to pension benefits being considered. These moves raise concerns over financial strain on both working individuals and seniors, amid economic pressures. The government's strategy appears aimed at drawing a political contrast with the Conservatives, while also addressing rising inflation and mortgage costs.