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Britain's new finance minister, Rachel Reeves, is set to announce significant tax hikes, potentially the largest in 30 years, to address public service issues and fund election pledges. The Labour government plans to increase borrowing by £20 billion for public investment while aiming to reassure investors of economic stability. Reeves emphasizes the need for substantial investment to drive growth, despite concerns over business optimism and the impact of higher taxes on the wealthiest citizens.
Britain's new finance minister, Rachel Reeves, is set to unveil potentially the largest tax increases in three decades on Wednesday. This move aims to address the country's struggling public services and will be accompanied by billions in additional borrowing to revamp the economy.
Rachel Reeves is set to unveil her first budget, aiming to "rebuild Britain" through a significant package of tax increases and additional borrowing. This historic moment is expected to shape British politics for the remainder of the decade.
Rachel Reeves' budget has raised the Energy Profits Levy on fossil fuel firms, expected to generate £300 million annually, but the Office for Budget Responsibility warns it will deter investment. While small businesses benefit from targeted support, the overall fiscal measures are seen as a blow to larger firms, with national insurance contributions increasing. Despite record tax revenues, unprotected departments face real-terms cuts, raising concerns about future spending.
The UK minimum wage will increase by 6.7% next year, rising to £12.21 ($15.88) an hour from £11.44. This change, effective from April 2025, will provide an additional £1,400 annually for full-time workers, supporting Chancellor Rachel Reeves' budget claims of protecting working people. However, it may pose challenges for the Bank of England in its efforts to combat inflation.
A lobbyist who collaborated with Rachel Reeves during the recent general election has secured high-level UK government meetings for Donald Tang, CEO of Shein, as the company explores a potential £50 billion listing on the London Stock Exchange. Kamella Hudson, a partner at FGS Global, facilitated discussions with Treasury ministers, including investment minister Poppy Gustafsson and City minister Tulip Siddiq, to advance Shein's ambitions.
UK Chancellor Rachel Reeves will unveil the first Budget of the new Labour government, facing a £22 billion overspend and limited room for additional spending. UBS anticipates a focus on fiscal rule changes, tax increases on capital gains and national insurance, and investment spending, while aiming for a balanced current budget by the fifth year of the OBR's forecast. The gilt remit for 2024-25 is expected to rise to £292 billion, reflecting the need for additional funding amid commitments to fiscal prudence.
UK shop prices have seen their fastest decline in over three years, with annual deflation at 0.8% as of October. While food prices rose by 1.9%, non-food items continued to experience deflation at 2.1%. Retailers express concern that upcoming budget changes could reignite inflation, particularly with potential increases in social security contributions and ongoing geopolitical tensions.
Britain's finance minister, Rachel Reeves, is set to announce significant funding for the NHS in the upcoming budget, aimed at purchasing new hospital equipment and increasing operations. Prime Minister Keir Starmer emphasizes the need for tax rises to revitalize public services, pledging to end a decade of neglect. The funding includes £1.5 billion for surgical hubs and scanners, and £70 million for radiotherapy machines, with a goal of delivering an additional 40,000 elective appointments weekly.
Chancellor of the Exchequer Rachel Reeves announced an additional £1.5 billion in funding for the NHS, aimed at increasing annual operations by 2 million. The budget also includes £70 million for new radiotherapy machines, part of a broader spending initiative to support healthcare services.
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