Rachel Reeves' Budget: Tax Hikes Amid Economic Uncertainty

Rachel Reeves, British finance minister, announced over £26 billion in additional taxes, adding to the £40 billion raised last year. The move sparked concerns about economic growth, as well as internal dissent within Labour over her handling of fiscal policies amidst political challenges.

Rachel Reeves, the UK finance minister, unveiled a budget that introduces more than £26 billion in new taxes on Wednesday, intensifying the pressure on the British public with levies on items from milkshakes to electric vehicles.

This move follows £40 billion of tax hikes last year, raising economic concerns and dissatisfaction in the Labour Party, which is already polling below 20%. Despite aiming to regain trust, the unexpected early release of budget details added to the discontent.

While Reeves sought to cut energy bills through tax code adjustments and removed child benefit caps, faster spending and muted growth amplify her unpopularity, making strategic fiscal reforms imperative amid upcoming elections.

(With inputs from agencies.)