Guardian

Rachel Reeves expected to extend ‘stealth’ freeze on income tax thresholds

UK Chancellor Rachel Reeves has announced the Labour Party's first budget since 2010, including £40B (US$52B) in tax rises and £22.6B ($29.5B) in extra day-to-day spending for the National Health Service (NHS).

BBC News

Speaking in the House of Commons, Reeves – the UK's first female Chancellor of the Exchequer – stated the "only way" to achieve economic growth was "invest, invest, invest," and claimed she was "restoring stability" public finances and "rebuilding" public services.

Parliament

Employers' national insurance contributions have been raised by 1.2 points from 13.8% to 15%, effective from April 2025, whilst the contribution threshold has been reduced from £9.1K ($11.8K) to £5K ($6.5K).

GB News

The lower rate for capital gains tax has been raised from 10% to 18%, with the higher rate up from 20% to 24%. The national minimum wage will also rise by 6.7% for over 21s from £11.44/hr ($14.87) to £12.21/hr ($15.87), with the minimum wage for 18 to 20-year-olds rising 16% to £10/hr ($13).

The Mirror

The Telegraph

Stamp duty on second homes has been raised from 3% to 5%, whilst unspent pensions will be added to inheritance tax from 2027, with the current inheritance thresholds freezes extended to 2030. Income tax band thresholds will also remain frozen until 2028, where they will then rise alongside inflation.

Non-dom tax status has been abolished, VAT exemption for private schools will be removed in Jan. 2025. £11.8B and £1.8B have been earmarked for the inflected blood and Post Office scandals respectively, whilst draught duty will be reduced by 1.7%, described by Reeves as "a penny off pints in pubs."

UK: Chancellor Rachel Reeves Announces $52B in Tax Rises Within Labour Budget

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UK: Chancellor Rachel Reeves Announces $52B in Tax Rises Within Labour Budget

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