19 minutes agoShareSaveBrian WheelerPolitical reporterShareSaveRachel Reeves has said she is “asking ordinary people to pay a little bit more” after unveiling £26bn of tax rises in a Budget that also saw her scrap the two-child benefit cap.The chancellor extended a freeze on tax thresholds for an extra three years in a move that will drag millions into paying more tax.But she said the biggest burden would fall on those “with the broadest shoulders” through higher taxes on property and savings, including a new tax on homes worth more than £2m.She said the package – which also includes measures to tackle the cost of living – was the “right thing to do”, but the Conservatives said she should resign for breaking a promise not to come back for more taxes.Reeves used her second Budget speech as chancellor to say that there would be no “reckless borrowing” and no return to austerity under Labour.She told MPs it was a budget for “for fair taxes, strong public services, and a stable economy”.The measures in it add up to £26bn in tax rises in 2029-30, which will bring the UK’s tax take to an all-time high of 38% of national income in 2030-31, according to the OBR.The watchdog also said the UK economy will grow at a slower rate than previously expected from next year.Key tax increases include:Freezing income tax and National Insurance thresholds for a further three years until April 2031 in England, Wales and Northern IrelandOwners of properties valued over £2m will pay a recurring annual charge of £2,500, rising to £7,500 for properties of £5m, on top of their council tax bill from April 2028New tax of 3p per mile for electric cars and 1.5p for plug-in hybridsIncreasing duty on online betting from 15% to 25%A £2,000 a year cap on the amount workers can put into their pensions under “salary sacrifice” schemes without paying National Insurance – at the moment there is no limit.Instead of increasing the main rate of income tax, Reeves decided to plug a hole in spending plans with dozens of smaller tax rises and freezing tax thresholds, something she said last year would “hurt working people”.Almost one in four taxpayers will pay some of their tax at the higher rate by 2031, according to calculations by the OBR.”I know that maintaining these thresholds is a decision that will affect working people, I said that last year and I won’t pretend otherwise now,” she told MPs.”I am asking everyone to make a contribution. But I can keep that contribution as low as possible because I will make further reforms to our tax system today to make it fairer.”Reeves insisted she had stuck to Labour’s election manifesto pledge no …
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[mwai_chat context=”Let’s have a discussion about this article:nn19 minutes agoShareSaveBrian WheelerPolitical reporterShareSaveRachel Reeves has said she is “asking ordinary people to pay a little bit more” after unveiling £26bn of tax rises in a Budget that also saw her scrap the two-child benefit cap.The chancellor extended a freeze on tax thresholds for an extra three years in a move that will drag millions into paying more tax.But she said the biggest burden would fall on those “with the broadest shoulders” through higher taxes on property and savings, including a new tax on homes worth more than £2m.She said the package – which also includes measures to tackle the cost of living – was the “right thing to do”, but the Conservatives said she should resign for breaking a promise not to come back for more taxes.Reeves used her second Budget speech as chancellor to say that there would be no “reckless borrowing” and no return to austerity under Labour.She told MPs it was a budget for “for fair taxes, strong public services, and a stable economy”.The measures in it add up to £26bn in tax rises in 2029-30, which will bring the UK’s tax take to an all-time high of 38% of national income in 2030-31, according to the OBR.The watchdog also said the UK economy will grow at a slower rate than previously expected from next year.Key tax increases include:Freezing income tax and National Insurance thresholds for a further three years until April 2031 in England, Wales and Northern IrelandOwners of properties valued over £2m will pay a recurring annual charge of £2,500, rising to £7,500 for properties of £5m, on top of their council tax bill from April 2028New tax of 3p per mile for electric cars and 1.5p for plug-in hybridsIncreasing duty on online betting from 15% to 25%A £2,000 a year cap on the amount workers can put into their pensions under “salary sacrifice” schemes without paying National Insurance – at the moment there is no limit.Instead of increasing the main rate of income tax, Reeves decided to plug a hole in spending plans with dozens of smaller tax rises and freezing tax thresholds, something she said last year would “hurt working people”.Almost one in four taxpayers will pay some of their tax at the higher rate by 2031, according to calculations by the OBR.”I know that maintaining these thresholds is a decision that will affect working people, I said that last year and I won’t pretend otherwise now,” she told MPs.”I am asking everyone to make a contribution. But I can keep that contribution as low as possible because I will make further reforms to our tax system today to make it fairer.”Reeves insisted she had stuck to Labour’s election manifesto pledge no …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
