Rachel Reeves Unveils Bold Budget with Tax Overhauls

British finance minister Rachel Reeves announced significant tax changes in her latest budget statement to parliament, aiming to balance borrowing targets. Key measures include a freeze on income tax thresholds, a new tax on high-value homes, and changes to welfare payments and vehicular charges.

British finance minister Rachel Reeves made headlines on Wednesday as she presented her latest budget to parliament, focusing on a series of tax reforms. These changes are set to impact a broad spectrum of the UK population, including workers, pension savers, and investors, in a strategic move to meet borrowing targets.

The budget announcement, initially overshadowed by an accidental early leak by the Office for Budget Responsibility, outlined several key financial changes. Among them, a freeze on income tax thresholds till 2031 aims to generate an additional £7.6 billion annually by 2029. Furthermore, a new council tax surcharge for high-value properties in England is expected to raise significant revenue.

Other notable reforms include the abolishment of the two-child welfare cap, the introduction of mileage-based charges for electric vehicles, adjustments to dividend tax rates, and alterations in commercial property taxes. Each of these measures reflects Reeves' commitment to a fiscally robust future for Britain.

(With inputs from agencies.)