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Reeves causes uproar after announcing new UK budget

30 October 202424 views0

In her 2024 budget announcement, UK Chancellor Rachel Reeves outlined significant fiscal measures aimed at addressing sluggish economic growth and supporting key sectors. Key elements included:

Infrastructure and Housing: Reeves allocated funds for housing projects, including £128 million for initiatives like the Liverpool Central Docks housing development. Infrastructure spending was further supported by a new debt rule allowing more flexibility, shifting to a “public sector net financial liabilities” measure to fund roads, rail, and healthcare facilities.
Healthcare and Defense Funding: A substantial investment in the NHS includes £1.5 billion for surgical hubs and £70 million for radiotherapy. Defense spending also received a boost, with an additional £3 billion to support armed forces readiness and capabilities.
Wages and Employment: The budget confirmed a minimum wage increase to £12.21 per hour, a 6.7% rise aimed at supporting low-income workers.
Tax Adjustments: Reeves introduced a freeze on income tax thresholds, effectively expanding fiscal drag, and raised capital gains tax rates. Employer national insurance contributions were also increased to address funding gaps. However, Reeves pledged not to increase income tax, national insurance, or VAT for individual taxpayers.
Green and Clean Investments: Targeted funds will go toward pollution control to enable housing projects and investment in energy-efficient homes, further aiming to meet the UK’s environmental goals.

Reeves emphasized that these changes are part of a broader strategy to balance fiscal responsibility with targeted growth initiatives, aiming to reverse the country’s low-growth trend and improve overall economic resilience.

The media opted to mostly focus on the strategy to bridge a projected £22 billion deficit while emphasizing investment-driven growth without resorting to austerity. This includes raising taxes by 40 billion pounds annually. Reeves’ plans will take the government’s tax take to a historic high of 38.2% of economic output by 2030. Prime Minister Keir Starmer had said the budget would target “those with the broadest shoulders” to spare “working people.”

All headlines unless otherwise linked are front pages on 30 October 2024.

Things can only debt better!

Metro

Reeves’ great £40bn tax gamle

Nightmare on Downing Street:
£40 billion tax raid by Chancellor set to stagnate pay and lower living standards

The Daily Telegraph

After mega £40bn tax grab…
At least she kept it down at the pumpkins!

The Sun

Return of tax and spend:

-Reeves tells businesses it must bear the brunt of £40bn in tax increases
-Chancellor raises spending by £70bn a year over the next five years
-Huge injection of funds into NHS and cash boost for schools

The Guardian