Rachel Reeves has introduced tax increases totaling £26 billion annually in a Budget that was leaked just before its official release. The Chancellor revealed a new mansion tax for homes valued over £2 million and confirmed the removal of the two-child benefit limit. Additionally, income tax thresholds will be frozen, impacting over 1.5 million workers. The gambling sector will face new levies, while fuel duty will remain unchanged until the following year.
Addressing the House of Commons, Ms. Reeves asserted that her decisions were aimed at creating a fairer and more secure Britain. The Mirror delves into the critical points outlined in the long-awaited Budget, including a new tax on properties exceeding £2 million, estimated to affect 100,000 to 200,000 homes and generate around £400 million annually.
Moreover, a “high value council tax surcharge” will be imposed on properties valued over £2 million starting from April 2028. The Budget also abolished the two-child benefit limit, a move that is expected to cost the Treasury £3 billion by 2029-30 but could decrease child poverty by 450,000.
The Chancellor proposed a £1.1 billion increase in gambling taxes, with a surge in remote gaming duty to 40% by April 2026. Other measures include a rail fare freeze, income tax threshold freezes until 2030, and a new mileage-based charge for electric and plug-in hybrid cars.
Furthermore, the Budget entails a £150 reduction in average household energy bills from April and a raise in state pension by around £550 annually from April next year. Notably, there will be pay raises for approximately 2.7 million workers, with the National Living Wage increasing to £12.71 per hour.
Additional announcements include the extension of the Soft Drinks Industry Levy to combat obesity, changes to cash ISA limits, a new tax on overnight stays in accommodations, and investments in NHS technology and infrastructure projects like the Lower Thames Crossing.
The Budget also addresses funding for various transport projects to enhance connectivity across regions. Ms. Reeves emphasized Labour’s commitment to revitalizing the NHS and driving infrastructure development across the country.
