What about the new budget and new taxes in the UK
Asked 6 days ago
Answer
The UK's new budget introduces significant tax increases, including a freeze on income tax thresholds, higher rates on income, dividends, property, and savings, and reduced pension incentives. These measures aim to boost the government's fiscal buffer but place a heavier burden on workers, pensioners, and middle earners. The budget is expected to raise £26 billion, raising the national tax burden to a record 38% of income, with critics warning of political risks if benefits are not evident.
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- 700,000 low earners now pay tax; 1 million more in higher brackets 1m 10s
- UK tax burden rises to 38%, highest since records began 1m 16s
- Critics warn political consequences if benefits of taxes are unclear 1m 57s
References
The budget places most of the extra tax burden on middle earners, raising the UK's tax burden to 38% of national income, the highest on record. Many citizens report financial strain from rising taxes and living costs, with critics warning of significant political consequences if the public does not see clear benefits from the increased taxation.
Rachel Reeves' budget introduces new levies on workers, pensioners, and savers, and freezes income tax thresholds, pushing more people into higher tax brackets as wages rise. The budget aims to generate £26 billion in additional revenue, mostly to maintain a financial buffer rather than directly increase public service spending.
British Finance Minister Rachel Reeves raised taxes in her budget plan, affecting workers, pension savers, and investors. The plan includes a prolonged freeze on income tax thresholds, higher income tax rates, and increased taxes on dividends, property, and savings income. These measures are expected to more than double the government's fiscal headroom to £22 billion over five years, largely due to over £26 billion in new tax rises.