Chancellor Rachel Reeves plans to declare a commitment to “invest, invest, invest” in Labour’s first budget in 15 years. She will assure that working individuals won’t see higher taxes on their payslips. However, she will specify that Labour’s promise to maintain national insurance rates applies only to employee contributions, potentially leading to increased taxes for employers. Income tax and VAT are expected to remain unchanged, with Reeves stating there will be “more pounds in people’s pockets”. Her belief in a brighter future for Britain is unwavering, with substantial rewards at stake today.
By protecting payslips alone, Reeves leaves room for potential increases in inheritance tax, stamp duty, capital gains tax, fuel duty, tobacco duty, alcohol duty, and other rates. She also intends to modify fiscal rules, allowing the government to adjust borrowing and repayment strategies to enable more significant investments. Reeves will outline priorities such as fixing the NHS, rebuilding Britain, and safeguarding working people’s earnings. Her expected statement highlights the importance of economic growth, wealth creation, and opportunities for all through persistent investment and restored economic stability.
Labour, since taking power, claims to have inherited a challenging financial situation from the Conservatives, citing a £22bn “black hole” in public finances. Reeves aims to find £40bn in the budget, though the timeline remains uncertain. Former Conservative Chancellor Jeremy Hunt has dismissed this figure. The Conservatives blame Labour for pay rises in sectors like healthcare and transport, contributing to financial difficulties.
Proud to be part of the Treasury team standing alongside our first woman Chancellor @RachelReevesMP who will deliver the first Labour budget for 15 years. A Budget to fix the foundations and deliver change. pic.twitter.com/79Gd4UquMX
— Emma Reynolds for Wycombe 🌹 (@EmmaforWycombe) October 30, 2024
In her speech to the Commons, Reeves will evoke past Labour governments of 1945, 1964, and 1997, known for revitalising the UK. She will emphasise that once again, it is Labour’s responsibility to rebuild Britain.
What Other Media Are Saying
- The Guardian reports Chancellor Rachel Reeves plans to unveil a transformative budget matching Labour’s historic moments, despite facing criticism over tax increases and public sector investment.(read more)
- Sky News reports that Chancellor Rachel Reeves will promise significant investments in Labour’s first budget for 15 years, emphasizing economic growth and NHS improvements while potentially raising employer national insurance.(read more)
Frequently Asked Questions
Here are some common questions asked about this news
Will Labour increase taxes on my payslip?
No, Labour plans to maintain current national insurance rates for employees.
Which taxes could potentially rise under Labour?
Inheritance tax, stamp duty, capital gains tax, and other duties could potentially increase.
What are Labour’s spending priorities?
Labour prioritizes fixing the NHS, rebuilding Britain, and safeguarding earnings.
How does Labour plan to handle borrowing and investments?
Labour plans to modify fiscal rules for flexible borrowing to enable more investments.
What financial situation has Labour inherited from the Conservatives?
Labour claims to have inherited a £22bn ‘black hole’ in public finances from the Conservatives.
