Rachel Reeves Unveils First Labour Budget

Rachel Reeves, Chancellor of the Exchequer, delivered her first budget as Labour's Chancellor, proposing over £40 billion in tax increases to address the UK's public service challenges after years of Conservative governance. Key measures include hikes in employers’ national insurance, capital gains tax, and a freeze on fuel duty, alongside a £22.6 billion increase for the NHS to tackle its significant waiting lists. Despite these investments, economists warn of sluggish earnings growth and the potential for living standards to decline, with projections indicating that disposable income growth will be the worst under Labour since the 2008 financial crisis. Reeves emphasized the need for substantial investment to revive the economy, while acknowledging the risks involved in her proposed tax strategies. Critics, including figures from the Institute for Fiscal Studies, cautioned that the ambitious plans may lead to financial strain on businesses and individuals. The budget also features support for education and welfare measures, such as an increased minimum wage and an uplift in funding for special educational needs.