British finance chief plans biggest tax shake-up since early 90s
First Labour budget in 14 years targets wealthy Brits and businesses to fund public services improvements. New finance minister wants to boost economy with extra borrowing while keeping markets calm
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
