ICYMI: Last week, @RachelReevesMP delivered Labour’s first Budget – here’s 5 things it will achieve 👇 pic.twitter.com/r63hpjP3et
— The Labour Party (@UKLabour) November 4, 2024
The new British government, led by the Labour Party, announced it would raise taxes by about 40 billion pounds ($51.8 billion) and borrow more for investment. The goal is to steer the country out of economic challenges. Rachel Reeves, the chancellor of the Exchequer, delivered her first budget in Parliament on Wednesday.
This was also the first budget ever presented by a woman. In her nearly 80-minute speech, Ms. Reeves announced the tax increases.
This Labour government is fixing the NHS and rebuilding Britain, while ensuring working people don’t face higher taxes in their payslips.
We’re choosing to do things differently.
We’re choosing investment over decline. pic.twitter.com/29FyWV5MWT
— The Labour Party (@UKLabour) November 3, 2024
More than half would come from higher taxes that employers pay on their workers’ salaries. She also increased capital gains and inheritance taxes. “The choices that I have made today are the right choices for our country,” Ms.
'All governments hit that marker within months in office. “Thatcher was sooner, very unpopular in 1979, Blair took six months.”'
📰 As one poll gives the Conservatives their first lead over Labour, @robfordmancs spoke with @pollytoynbee.https://t.co/c50OE0oYfC
— UK in a Changing Europe (@UKandEU) November 5, 2024
Labour’s first budget raises taxes
Reeves said. “That doesn’t mean these choices are easy.”
The budget was the first major opportunity for the Labour Party to set Britain’s economic agenda.
The party was swept into office with a large majority in July’s general election, ending 14 years out of power. The budget has also been seen as a reset moment for the Labour Party after its first few turbulent months in office. The prime minister stated this week that the budget would “light the way” toward the government’s priorities.
These include ensuring financial stability, improving public services, and encouraging investment. For months, Ms. Reeves had warned that Britons would need to endure short-term pain for long-term gain.
She emphasized that the budget choices would help achieve the government’s goal of making Britain the fastest-growing economy in the Group of 7.
