Rachel Reeves Unveils Transformative UK Budget

Rachel Reeves, British finance minister, introduced her first budget to parliament, focusing on tax increases and revised fiscal rules to encourage investment. Key aspects include raising business taxes, extending inheritance tax freezes, growth projections, and increased government spending on health and defense.

In a landmark fiscal announcement, British finance minister Rachel Reeves presented her inaugural budget to parliament, outlining pivotal tax hikes and adjustments to fiscal regulations aiming to invigorate investment.

Among the significant measures, Reeves announced a raise in business social security contributions and untangled existing fiscal rules, forecasting a government budget balance by 2029/30. Notably, she decided against prolonging the freeze on personal tax thresholds beyond 2028/29.

The budget highlighted an anticipated 2% economic growth by 2025, buoyed by increased spending in health and military sectors, while retaining a temporary reduction in fuel duties due to enduring economic volatility.

(With inputs from agencies.)