RACHEL Reeves has used her first Budget to embark on a massive £40 billion tax raid – with only small relief for hard-working Brits.
The Chancellor told the country that there would be short-term pain before any gain at the start of a ten-year plan for Britain.
PARachel Reeves outside 10 Downing Street before heading to the Commons for the Budget[/caption]
RexReeves holds the red Budget box with HM Treasury Ministers ahead of the announcement[/caption]
AFPReeves in the Commons this afternoon[/caption]
Treasury sources has been saying there would be no rabbits out of the hat – but there was one for workers.
But there will be a wait. Income tax thresholds will go up with inflation from 2029 leaving more money in the pockets of people going out to work.
There will be major relief to motorists too who will see fuel duty frozen for yet another year – thanks to The Sun’s Keep It Down. campaign
The “trick and treat” Halloween package included:
A freeze to fuel duty for a 15th consecutive year in a win for The Sun’s Keep It Down campaign
A penny off a pint by cutting draught beer duty, but raising booze taxes on other drinks
A pay rise for millions as the minimum wage was increased by £1,400 a year
A hike to a packet of cigarettes as smoking duties were raised
A benefits crackdown with Ms Reeves telling jobless Brits to “get back to work”
An increase to the state pension of £473 next year through the triple lock
An inheritance tax raid through freezing the rates people pay
A increase to the Carer’s Allowance to give cash to 60,000 more carers
Yes, change won’t happen overnight if anyone was expecting to actually feel better off soon.
And with growth forecast to be less than 2 per cent for the next few years there could be more tax raids and savings on the way.
This Labour government had put growth at the very heart of its plans for office.
But the biggest hit will come to business. Some £25 billion a year by the end of the decade will come from a rise to employer national insurance contributions.
But to help small business there will be exemptions for those firms who employ four or fewer workers.
Ultimately, experts say the tax rise will be felt by ALL of us in the form of lower wage rises, as employers look to balance the books.
Despite some concern in the hospitality industry, there will be in part relief as she confirmed “a penny off a pint in the pub”.
Some will say that is small beer.
There was a pledge to make waiting lists in hospitals to be no longer than 18 weeks as she ploughed £22 billion into the NHS for day-to-day spending.
She stood in the Commons – as the first female Chancellor to deliver a Budget – telling the country to face the reality in her attempts to rebuild Britain.
She was quick to aim fire at the Tories saying they “failed our country” by breaking the NHS and hurting business with the Brexit deal.
But the Tories will attempt to make hay from Labour putting up taxes.
A tweet from Rishi Sunak was gaining traction in the build-up to the Budget.
WATCH RACHEL REEVES ON NEVER MIND THE BALLOTS
By Ryan Sabey, Deputy Political Editor
RACHEL Reeves will be grilled in a special Budget edition of The Sun’s Never Mind The Ballots show today.
Our Political Editor Harry Cole will put the Chancellor on the spot shortly after she’s finished delivering her crucial address in the House of Commons.
It will be available to watch on thesun.co.uk, YouTube and Sun social channels at 5.30pm.
Topics will include her decision on whether to spare motorists a fuel duty rise, and the expected eye-watering tax rises she will impose.
Since its launch earlier this year, NMTB has cemented its place at the heart of British politics.
During the General Election campaign The Sun was the only print publisher to host back-to-back grillings of Rishi Sunak and Sir Keir Starmer.
Footage from The Election Showdown has been viewed over 15 million times.
NMTB has also featured interviews with ex-PMs Boris Johnson and Liz Truss, as well as senior politicians Nigel Farage, James Cleverly, Wes Streeting, Steve Reed and Bridget Phillipson
Just days before the election, he wrote: “Keir Starmer will put up your taxes.
Bookmark this tweet.”Some departments including Justice and Transport are understood to have been hit hard.
We will only find out the true cost to them in the coming weeks and months.
But some of the cash will be found in 2 per cent efficiency savings across government with greater use of technology and joined-up thinking.
Massive savings of £4.3 billion in counter-fraud measures in welfare will also boost treasury coffers.
If anyone was expecting a rabbit out of the hat to soothe the tax-raising pain, they were probably left disappointed.
Treasury sources have been saying that the era of rabbits out the hat “is over”.
Her ambition is growth to make everyone feel richer but it’s going to be a long road.