In a daring debut, the government has rolled out its inaugural budget since seizing power in the UK last July. The centerpiece? A substantial £40 billion tax increase aimed at rejuvenating public services.
“I have made my choices. Responsible choices,” Chancellor of the Exchequer Rachel Reeves said. The most contentious tax hike targets national insurance contributions, a move that businesses dread, expected to rake in over half of the new revenue—£25 billion annually. Other revenue sources include increased capital gains tax, VAT on private schools, and the end of energy subsidies for millions of pensioners. The Office for Budget Responsibility (OBR) forecasts that the UK’s tax burden will climb from 36.4% of GDP in 2024/2025 to a record 38.3% in 2027/2028. Former Conservative Prime Minister Rishi Sunak said the budget is a “classic Labour agenda: more taxes, more borrowing, no growth plan, and…
