Rachel Reeves has announced a £26 billion annual increase in taxes in a Budget that was leaked just before its official release. The Chancellor revealed a new mansion tax affecting properties valued over £2 million and confirmed the removal of the two-child benefit limit. Additionally, income tax thresholds will be frozen, impacting over 1.5 million workers. The gambling industry will face new levies, while fuel duty will remain unchanged until the following year.
In a lively session at the House of Commons, Ms. Reeves defended her decisions, stating they were aimed at creating a fairer, stronger, and more secure Britain. The Mirror provides an overview of the key points from the long-awaited Budget, including the introduction of a tax on homes over £2 million, estimated to affect 100,000 to 200,000 properties and raise approximately £400 million annually.
The Budget also includes a “high value council tax surcharge” on properties exceeding £2 million, with varying charges based on property value bands. Notably, the Chancellor abolished the controversial two-child benefit limit, projected to cost the Treasury £3 billion by 2029-30 but expected to reduce child poverty by 450,000.
Furthermore, the Budget outlines adjustments to gambling taxes, with a planned increase in remote gaming duty and the introduction of a new general betting duty. Rail passengers will benefit from the first fare freeze in 30 years, saving an estimated £600 million in the upcoming year. Income tax thresholds will remain frozen until 2030, resulting in more individuals moving into higher tax brackets as their incomes rise.
Other measures include a new mileage-based charge for electric and plug-in hybrid cars, a reduction in energy bills by £150 for the average household, and an increase in the state pension by approximately £550 per year. The Budget also addresses pay raises for over 2.7 million workers, changes to national insurance contributions on pension schemes, and widening the tax on sugary drinks to combat obesity.
Moreover, the Budget introduces a reduction in the annual cash ISA limit for younger savers, a new tax on overnight stays in accommodations, and investments in NHS technology. Funding has been allocated for the Lower Thames Crossing project and various transportation upgrades, demonstrating a commitment to infrastructure development and economic growth.
