Rachel Reeves' Bold Budget: Child Benefit Cap Abolished

UK Finance Minister Rachel Reeves will remove the two-child cap on welfare benefits in her upcoming budget. This decision, estimated to cost £3 billion annually, aims to assist more families. Additionally, Reeves plans to impose a higher tax on properties valued over £2 million, replacing the previous £1.5 million threshold.

Rachel Reeves, the UK's finance minister, is set to announce significant changes in her upcoming budget, including the abolition of the two-child cap on welfare benefits. This reform is projected to cost around £3 billion annually and is intended to provide more comprehensive support for families.

In a move designed to balance these expenses, Reeves plans to introduce a new tax surcharge on properties valued over £2 million, replacing the previously considered threshold of £1.5 million. This decision reflects efforts to generate additional revenue from higher-valued real estate and address fiscal targets.

Reeves' announcement comes as part of an effort to reassure bond market investors of her commitment to fiscal responsibility, even amidst an anticipated economic downgrade. The Treasury and Department for Work and Pensions have yet to comment on these reported measures.

(With inputs from agencies.)