Rachel Reeves has announced a £26 billion annual increase in taxes within a Budget that was leaked shortly before its official release.
The Chancellor revealed a new mansion tax that will impact properties valued above £2 million. Additionally, the longstanding two-child benefit limit will be scrapped, a decision advocated for by anti-poverty activists for years.
Notably, income tax thresholds will be frozen, affecting over 1.5 million workers. The gambling sector will face new levies, while fuel duty will remain unchanged until the following year, as stated by Ms. Reeves.
Addressing the rowdy House of Commons, Ms. Reeves asserted, “These are my decisions. The right choices for creating a fairer, stronger, and more secure Britain.”
The Mirror analyzes the essential points from the long-awaited Budget presented by the Chancellor.
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The Chancellor has introduced a new tax on residences valued over £2 million.
This is projected to impact between 100,000 to 200,000 properties, with charges ranging from £2,500 to £7,500 annually and estimated revenues of approximately £400 million per year for the Treasury.
The Budget contains a “high value council tax surcharge” on properties exceeding £2 million.
The OBR responded, stating, “Starting in April 2028, owners of properties valued over £2 million will face an annual charge, separate from existing council tax obligations. The surcharge will vary based on property value bands, ranging from £2,500 to £7,500.”
In a significant move, the Chancellor scrapped the controversial two-child benefit cap, which has been criticized for exacerbating child poverty.
Initially implemented by the Conservatives in 2017, the policy restricts child tax credits and universal credit to the first two children in a family. OBR reports indicate a projected cost of £3 billion by 2029-30, with an anticipated reduction in child poverty by 450,000.
Labour MPs and former Prime Minister Gordon Brown have long campaigned for the removal of this policy, which has been a source of internal party strife. Ms. Reeves also confirmed that benefits will be adjusted for inflation starting in April.
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