British tax system gets biggest shake-up in 30 years as minister shows new plan
British finance minister presents major tax changes affecting businesses and wealthy individuals. New budget includes significant public spending plans and updated fiscal rules for next five years
Rachel Reeves introduced a ground-breaking budget with far-reaching tax reforms (the most extensive since early-90s); her first major policy announcement as finance minister
The new fiscal strategy aims to balance day-to-day spending by late-29: creating extra 15.7 billion pounds for infrastructure projects. Business owners face higher costs - social security payments jump to 15% next spring while contribution thresholds drop to 5k pounds per worker
Wealthy individuals dont escape changes either. The govt extends inheritance-tax freeze until 2030; overseas income loopholes close-up raising 12.7 billion pounds over 5 years. Capital-gains tax sees a notable rise: lower rate moves to 18% and higher rate reaches 24%
The Office for Budget Responsibility shows mixed economic outlook; growth predictions range from 2% to 1.5% through mid-decade. Public services get significant boost:
- Health service receives 22.6 billion extra
- Education gets 6.7 billion with 500 schools rebuild plan
- Defense funding increases by 2.9 billion
- HS2 railway confirms central-London connection
Energy sector faces new rules - North Sea oil-gas producers windfall tax increases to 38% lasting until 2030. Property market sees changes too: second-home buyers pay 5% stamp duty (up by 2 points)‚ while fuel duty stays low for another year due to living costs
