What does the Budget mean for London?

"Chancellor Rachel Reeves has announced an increase in taxes in the Budget, which will raise the government's fiscal headroom to 21.7bn and fund spending to bring down the cost of living for "working people". The statement, made in the House of Commons after the details were published early in error by the Office for Budget Responsibility, set out changes including a rise in the minimum wage and an electric vehicle (EV) mileage tax."

"Tens of thousands of workers in London will receive a pay rise from April due to an increase in the minimum wage, which the government announced ahead of the Budget. The hourly rate for over-21s will rise by 50p to 12.71, with workers aged 18-20 seeing an 85p rise to 10.85, and under-18s and apprentices getting 45p more to 8 an hour. In London, there are approximately 153,200 minimum wage workers aged 16 and over, according to the government's 2024 statistics. The highest number of those - 10,000 - work in Westminster."

"Michael Kill, chief executive of Night Time Industries Association, called the Budget a "hammer blow to the already fragile night-time economy". He said the rise in minimum wage would present a serious challenge for the sector and he was "deeply concerned" by direct and indirect tax increases."

An increase in taxes raises the government's fiscal headroom to 21.7bn to fund measures aimed at lowering living costs for working people. National minimum wage rates will increase from April: over-21s to £12.71, 18–20s to £10.85, and under-18s and apprentices to £8. Approximately 153,200 London workers on minimum wage aged 16 and over will be affected, with Westminster the largest local concentration. Retail, hospitality and leisure businesses will receive permanently lower tax rates funded by higher taxes on properties worth £500,000 or more. Businesses warn of hiring challenges and concern about impacts on the night-time economy. Plans include extending the DLR to Thamesmead.

Read at www.bbc.com