Chancellor Rachel Reeves has delivered her inaugural budget, marking a significant shift in the UK's fiscal landscape with a series of bold reforms. The announcement includes the abolition of a contentious welfare cap and the introduction of new taxes on high-value assets and unearned income.
Key Measures of the Labour Budget
In a move that will affect households across the country, Rachel Reeves has scrapped the two-child benefit cap, a policy long criticised by anti-poverty campaigners. Simultaneously, she has ushered in a new 'mansion tax' on high-value properties, targeting the upper echelons of the housing market.
The budget also introduces higher income tax rates on savings, dividends, and money earned from property, signalling a focus on taxing wealth and investments. As widely anticipated, the Chancellor confirmed that income tax thresholds will be frozen until the 2030-31 tax year, a measure that will gradually increase the tax burden for millions as wages rise.
Pledges Kept and Economic Impact
Reeves has emphasised her commitment to the party's manifesto, stating that Labour has kept its pledge not to raise taxes on working people. To this end, basic rates of income tax, VAT, and national insurance will not go up.
The Guardian is offering readers a unique opportunity to delve deeper into the budget's implications. Our team of expert editors is on hand to address your queries. Heather Stewart, our economics editor, will analyse the broader economic impact of Reeves's policy choices, while Hilary Osborne, our money and consumer editor, will help clarify what these changes mean for your personal finances.
Have a Budget Question? We Have Answers
If you are grappling with how the new 'mansion tax' might affect you, are confused by the changes to taxes on savings, or want to understand the long-term effect of frozen tax thresholds, you can share your question. The Guardian will endeavour to answer selected queries in a forthcoming feature, providing much-needed clarity on this pivotal financial statement.
Please note that while we can offer explanation and analysis on the new policies, we cannot provide individual financial advice. Contributions can be made anonymously via a secure, encrypted form accessible only to the Guardian, with all personal data deleted after the feature is complete.
