What's happened
Chancellor Rachel Reeves unveiled a £40 billion tax increase to fund over £70 billion in public service spending, aiming to address the crisis in the NHS, schools, and justice system. Experts warn of potential income squeezes and sluggish growth, raising concerns about the long-term impact on living standards.
Why it matters
What the papers say
The Mirror highlights that Chancellor Rachel Reeves' Budget aims to address the failures of the previous Conservative government, stating, "The scale and seriousness of the situation that we have inherited cannot be underestimated." However, the Resolution Foundation cautions that both rich and poor will face income squeezes, projecting a 0.5% growth in disposable income, which is still the worst term for living standards under Labour. Metro critiques the Budget as a "patchwork of promises," noting that while there is substantial investment in the NHS, it may not be enough to address the long-term needs of public services. The Mirror also points out that the Chancellor's measures, including a rise in National Insurance, could dampen wage growth, leading to further financial strain on families. This sentiment is echoed by Mike Brewer of the Resolution Foundation, who states, "By prioritising extra spending on public services and investment, the Chancellor is borrowing an extra £32 billion a year by the end of the Parliament."
How we got here
The recent Budget marks a significant shift in UK fiscal policy after 14 years of Conservative governance, which many argue led to underfunded public services. The Labour government aims to reset priorities and address pressing issues in healthcare and education.
More on these topics
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Rachel Jane Reeves is a British Labour Party politician serving as Shadow Chancellor of the Duchy of Lancaster and Shadow Minister for the Cabinet Office since 2020. She has been the Member of Parliament for Leeds West since 2010.
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Labor-Gesher was a joint list of the Israeli Israeli Labor Party and Gesher parties for elections for the twenty-second Knesset. The list advocated social democracy and progressive taxation. The list's platform focused primarily on socio-economic issues.
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The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country located off the northwestern coast of the European mainland.
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The Resolution Foundation is an independent British think tank established in 2005. Its stated aim is to improve the standard of living of low- and middle-income families.