Breaking Down the Budget 2025

"On Weds 26th November, Chancellor of the Exchequer Rachel Reeves, delivered her second Budget. In a pre-statement address, she said, "I know that the cost of living is still bearing down on family finances, I know that people feel frustrated at the pace of change, or angry at the unfairness in our economy. I have to be honest that the damage done from austerity, a chaotic Brexit and the pandemic were worse than we thought.""

"Unveiling her Budget, Reeves stated, "I said there would be no return to austerity, and I meant it. This Budget will maintain our investment in our economy and our National Health Service. I said I would cut the cost of living, and I meant it. This Budget will bring down inflation and provide immediate relief for families. I said that I would cut debt and borrowing, and I meant it.""

"In their election manifesto, Labour promised no rises to income tax, national insurance or VAT to keep taxes low for "working people", and to avoid implementing any, Reeves is instead freezing income tax and NI thresholds for an extra three years beyond 2028, which will pull more people into higher tax bands over time and raise £8bn. The tax rates on property, savings and dividends income will be increased by 2 percentage points."

Chancellor Rachel Reeves delivered the second Labour Budget on 26 November, prioritising investment in the economy and the NHS, promising cost-of-living relief and debt reduction. Income tax, national insurance and VAT rates were not increased; income tax and NI thresholds are frozen for three extra years beyond 2028, which will pull more people into higher tax bands and raise £8bn. Tax rates on property, savings and dividend income increase by two percentage points. Additional measures include higher gambling taxes, a mileage-based tax for electric and plug-in hybrids, extension of the sugary drinks levy to pre-packaged milkshakes and lattes from 2028, and a brief fuel duty freeze followed by staged increases.

Read at London On The Inside