Rachel Reeves delivers UK Annual Budget
Labour’s first budget since 2010, delivered by Chancellor Rachel Reeves, includes £40 billion in tax increases and spending cuts. A key measure is a £25bn rise in employers’ national insurance contributions, set to increase from 13.8% to 15% in April 2025, alongside a lower £5,000 threshold for payments. The budget also promises significant investments in infrastructure, housing, and public services, including £22.6bn for the NHS and £5bn for housing. While businesses face higher taxes, the government plans to support workers with higher wages and new investments in key sectors.
The Office for Budget Responsibility warns the national insurance hike will lead to lower wages and higher prices for consumers. Income tax thresholds will be uprated in 2028, and capital gains taxes will rise. Other measures include a freeze on inheritance tax thresholds and additional funds for devolved governments in Scotland, Wales, and Northern Ireland.
