Rachel Reeves is set to roll-out Britainʼs most far-reaching tax changes since the early-90s‚ as Labourʼs first budget plan takes shape. The finance minister will present her ideas tomorrow at 12:30 GMT
The ex-Bank of England worker aims to fix-up public services with money from higher taxes on well-off people and companies (which some say could reach 40 billion pounds); while also getting extra cash through borrowing. Its been about 3 months since Labour took control‚ and theyʼve found what they say is a 22-billion-pound money gap left by the last team
Public services are high on the list for improvements:
- Health service waiting times
- New housing projects
- Better schools
“We must rebuild Britain once again“ Reeves stated in her pre-budget talk‚ showing her focus on putting money into the countrys growth. However business-people dont seem too happy - their confidence has dropped to its lowest point since Labour won
The plan includes worker-friendly rules and bigger minimum wages‚ but markets seem less worried than they were 2 years ago during Liz Truss time - when tax cuts caused big problems. Bond traders think government borrowing will go up to 105 billion pounds this year‚ making it the second-highest ever
The new team wants to change some money-rules to get more investment cash - maybe up to 53 billion pounds more. Keir Starmer‚ the Prime Minister says people “with the broadest shoulders“ need to pay more: that means extra taxes on things like business profits‚ inheritance money and overseas wealth