What's happened
Chancellor Rachel Reeves is under pressure ahead of Labour's first budget in 14 years, scheduled for October 30. With warnings of painful tax increases, speculation surrounds potential hikes in inheritance and capital gains taxes, as the government grapples with a significant fiscal deficit inherited from the previous administration.
Why it matters
What the papers say
According to Jon Craig from Sky News, Chancellor Rachel Reeves has faced criticism for not ruling out tax increases, particularly on inheritance and capital gains taxes. He notes that Reeves stated, 'I'm not going to write a budget two months ahead of delivering it,' indicating the uncertainty surrounding the budget. Meanwhile, the Mirror highlights Keir Starmer's warning that the budget will be 'painful,' reflecting the government's struggle with a £22 billion deficit. Metro adds that speculation is rife about the impact of potential tax increases on middle-class families, with many preparing for financial strain. The Telegraph reports that wealth managers are seeing clients rush to divest assets in anticipation of these changes, underscoring the anxiety surrounding the upcoming fiscal decisions.
How we got here
Labour's first budget since 2010 is set against a backdrop of a £22 billion fiscal deficit. Prime Minister Keir Starmer has indicated that the budget will be 'painful,' leading to speculation about tax increases, particularly in inheritance and capital gains taxes.
Common question
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What to Expect from Labour's Upcoming Budget?
As Labour prepares for its first Budget in 14 years, Chancellor Rachel Reeves is warning the public to brace for a 'painful' announcement. With a £22 billion budget deficit inherited from the previous government, many are left wondering what key changes might be on the horizon. Here are some common questions about the upcoming budget and its potential impact on the public.
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Stay updated with the latest news that matters. From political events to crime stories and cultural developments, discover the key headlines shaping our world today. Here are some of the most pressing issues and events currently making waves in the news cycle.
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What to Expect from Labour's Upcoming Budget?
As Labour prepares for its first budget in over a decade, significant scrutiny surrounds the anticipated fiscal decisions. With a looming £22 billion deficit and warnings of painful tax increases, many are left wondering how these changes will impact their finances. Below are some common questions regarding the upcoming budget and its implications.
More on these topics
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Sir Keir Rodney Starmer KCB QC MP is a British politician and former lawyer who has served as Leader of the Labour Party and Leader of the Opposition since 2020. He has been Member of Parliament for Holborn and St Pancras since 2015.
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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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The Labour Party is a centre-left political party in the United Kingdom that has been described as an alliance of social democrats, democratic socialists and trade unionists.