Labour's low growth Budget

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UK Politics Politics News Daily News Government Spectators Keir Starmer

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16d ago 15:18

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Rachel Reeves has announced that taxes will rise by £40 billion in Labour’s first Budget for 14 years. The headlines include: an increase in employers’ National Insurance contributions from April to 15 per cent, raising £25 billion; that the freeze on income tax and National Insurance thresholds will not be extended past 2028; that the lower rate of capital gains tax will be raised from 10 per cent to 18 per cent, and the higher rate from 20 per cent to 24 per cent; that fuel duty will remain frozen for the next two years; and the introduction of VAT on private school fees from January.
The Chancellor didn’t want to surprise anyone with this Budget. She didn’t want to shock the markets, nor did she want any accusation that she had played fast and loose with the public finances. Still, that won’t make today’s fiscal event any less memorable – or painful. Will these measures lead to any meaningful growth?
Katy Balls speaks to Kate Andrews and Michael Gove.
Produced by Megan McElroy and Oscar Edmondson.

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