Reeves unveils tax rises and ends two-child benefit cap

"Rachel Reeves has announced 26bn in tax increases aimed at shoring up the UK economy in what is being seen as a make-or-break Budget for the government. The chancellor has extended a freeze on income tax and National Insurance thresholds, meaning millions of workers will be dragged into paying higher rates as their wages increase. She also targeted owners of homes worth more than 2m with a "mansion tax" - and hit owners of electric and plug-in hybrid cars with a new mileage-based charge."

"In the run up to this year's Budget, Reeves decided against increasing the main rate of income tax - and is instead extending a freeze on thresholds, something she said last year would "hurt working people". "I know that maintaining these thresholds is a decision that will affect working people, I said that last year and I won't pretend otherwise now," she told MPs. "I am asking everyone to make a contribution. But I can keep that contribution as low as possible because I will make further reforms to our tax system today to make it fairer.""

The Budget introduces £26bn of tax increases to shore up the UK economy. A freeze on income tax and National Insurance thresholds will pull millions of workers into higher rates as wages rise. A new levy targets homes worth more than £2m and a mileage-based charge applies to electric and plug-in hybrid cars. The two-child benefit cap is scrapped and measures to ease the cost of living are included. The plan promises to avoid reckless borrowing or a return to austerity while cutting NHS waiting lists and reducing government debt.

Read at www.bbc.com