Rachel Reeves, the first female Chancellor of the Exchequer, has announced a tax increase of £40 billion in her inaugural budget. The purpose of this tax increase is to improve public services and address the fiscal deficit that was caused by the previous Conservative administration.

In her speech to the House of Commons, Reeves emphasized the seriousness of the economic situation that she inherited and stated that any responsible chancellor would need to take decisive action. The budget's main goals are to restore stability to the UK's public finances and focus on rebuilding essential public services.

This historic announcement by Reeves represents a significant change in fiscal policy as the Labour government works to address the challenges left by its predecessor.