Rachel Reeves Unveils British Budget with Tax Hikes to Raise Billions

British finance minister Rachel Reeves has presented a budget statement proposing tax increases aimed at generating £26.1 billion annually by 2029/30. Key measures include freezing income tax thresholds, introducing a tax on homes over £2 million, a new charge for electric vehicles, and increasing dividend tax rates.

In a significant financial development, British finance minister Rachel Reeves presented a budget statement to parliament unveiling major tax hikes, expected to yield £26.1 billion annually by 2029/30. The announcement came shortly after the Office for Budget Responsibility (OBR) inadvertently published its outlook online due to a technical glitch.

The fiscal plan outlines several key measures, such as maintaining the freeze on income tax thresholds until the 2030/31 financial year, projected to draw in £7.6 billion. Additionally, a new annual tax targeting homes valued over £2 million will generate £400 million, commencing in April 2028.

Amidst efforts to adapt to evolving economic factors, the government will also institute a mileage-based charge for electric and plug-in hybrid vehicles starting April 2028, contributing £1.4 billion. Further revenue will be sourced from increased dividend tax rates and higher gambling duties.

(With inputs from agencies.)