Chancellor Rachel Reeves is set to present her highly anticipated Budget today following speculation about potential tax increases. The Budget announcement is scheduled for around 12:30 pm on Wednesday in the Commons, where Reeves is expected to address a significant £20 billion deficit in public finances, focusing on addressing the cost of living and improving the NHS.
During a recent meeting with Labour MPs, Reeves outlined her top three priorities, emphasizing the need to reduce the cost of living, tackle NHS waiting lists, and manage the cost of debt. She highlighted previous government initiatives such as increasing the national living wage and minimum wage, safeguarding the triple lock, and enhancing free childcare services. Reeves also mentioned forthcoming measures, including a freeze on prescription charges and rail fares, with a commitment to further actions.
The Budget is likely to include a raise in the minimum wage for millions of workers, benefiting over 2.4 million low-wage earners. Additionally, a freeze on rail fares, the removal of the two-child benefit limit, and an extension of the freeze on NHS prescription charges are anticipated announcements.
Furthermore, there are discussions about potential changes to gambling taxes and the widening of the tax on sugary drinks to combat obesity. Reeves is also expected to confirm an increase in the state pension from April next year and introduce a cap on pension savings through salary sacrifice schemes. The Budget may also involve adjustments to tobacco and alcohol duties, as well as the consideration of tourist taxes and potential changes to fuel duty, including a pay-per-mile charge for electric vehicle drivers in the future.