Reeves' Budget: Tax Hikes, New Property Tax, Pension Changes

Rachel Reeves Budget: Tax Hikes, Property Levy, and Pension AdjustmentsIn a significant budget statement, UK Treasury chief Rachel Reeves announced tax increases, including freezing income tax thresholds, a new property tax, capital gains tax adjustments, and reduced pension tax-free allowances. These changes are expected to raise £26 billion by 2029-30. Despite a technical error leading to a premature leak, the OBRs economic outlook was less severe than expected, avoiding an income tax rate increase. However, experts warn of financial pressure on households. The Chancellor now has a £21.7 billion fiscal headroom, boosting market confidence. Investor reactions were positive, with the bond market stable, FTSE one hundred index up 0.6%, and the pound gaining 0.2% against the US dollar. The government aims to fund public services entirely from tax revenues by 2029-30.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.