This Budget raises taxes by 40bn, amounting to a massive increase that aligns with expectations of big borrowing and big spending amidst stagnant growth and high inflation.
The thresholds for income tax and National Insurance contributions are frozen until 2028, which contributes to 'fiscal drag' and results in effective tax rises due to inflation.
Rachel Reeves had the option to unfreeze tax thresholds before 2028 but chose not to, raising concerns about the future financial impact of her decisions.
While the Budget focuses on supporting the NHS and schools, there remains skepticism regarding whether these substantial financial measures will meaningfully improve people's lives.
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