Rachel Reeves Unveils Historic Budget in the UK

Chancellor Rachel Reeves has introduced her first budget, which features a £40 billion tax increase, the largest since 1993, primarily targeting corporations and wealth rather than standard income taxpayers. The budget aims to bolster public services, with significant funding allocated to health, education, and military sectors, while also increasing employer national insurance contributions to 15%. Critics, including the TaxPayers' Alliance, argue that these tax hikes will stifle growth and lead to higher costs for businesses and lower wages for workers. Despite the increased tax burden, Reeves has assured that ordinary voters will not see additional taxes, suggesting that the funding will come from businesses and wealthier individuals. The budget also includes measures to freeze inheritance tax thresholds and increase infrastructure spending, with a goal to eliminate the budget deficit by 2029/30. While Labour MPs welcomed the budget, concerns persist regarding its potential long-term economic impact and implications for business investment.