Chancellor Rachel Reeves announced Labour’s first Budget, featuring significant tax increases aimed at addressing a £22bn financial “black hole” inherited from the Conservatives. Employers will face the brunt of the £40bn tax rise, the largest in a generation. The Budget prioritizes investment in the NHS, education, and transport, with the NHS receiving its largest funding boost since 2010. Reeves also lifted the freeze on income tax thresholds beyond 2028 and adjusted borrowing rules to enhance infrastructure investment. Despite these measures, the Office for Budget Responsibility predicts minimal GDP growth in five years.

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