Chancellor Rachel Reeves Unveils £40 Billion Tax Increase

In her first Budget as Chancellor, Rachel Reeves announced a £40 billion tax hike aimed at addressing severe public finance issues attributed to previous Conservative governments. She characterized the fiscal situation as a 'black hole' left by her predecessors, which necessitates significant investment to restore economic stability. Reeves highlighted the need for compensation funds for victims of the infected blood and Post Office Horizon scandals, totaling £13.6 billion. She criticized Conservative austerity measures for damaging the NHS and impacting families through economic policies, including Brexit. As the first female Chancellor to deliver a budget, Reeves emphasized the urgency of her proposals to rebuild public services and stabilize finances. The announcement signals a shift in fiscal policy as Labour seeks to address long-standing economic challenges.