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21m ago

Reeves Sets £26bn Tax Rises After OBR Leak, Freezes Thresholds to 2030

A rare OBR leak prompted a probe, shaping a revenue‑raising plan with targeted cost‑of‑living relief.

FILE - Britain's Chancellor of the Exchequer, Rachel Reeves, holds up the traditional red ministerial box containing her budget speech, as she poses for the media outside No 11 Downing Street, before departing to the House of Commons to deliver the budget in London, Wednesday, Oct. 30, 2024. (AP Photo/Kirsty Wigglesworth, File)
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Overview

  • Britain’s budget watchdog accidentally posted its outlook before the speech and opened an investigation, with markets reacting as details showed £22bn of fiscal headroom.
  • Income tax thresholds are frozen until 2030–31, the Budget’s biggest revenue raiser, as the OBR flags weaker productivity and lower growth through the forecast period.
  • A new annual surcharge hits properties valued above £2m from April 2028, with banded charges starting at about £2,500 and rising to £7,500 for homes worth £5m or more.
  • Pension salary‑sacrifice relief is capped at £2,000 a year from 2029 for National Insurance purposes, while EV drivers face a pay‑per‑mile charge of 3p for battery cars and the sugar levy extends to packaged milk‑based drinks with a lower threshold.
  • The two‑child benefit cap is scrapped and the national living wage rises to £12.71 for workers aged 21 and over, alongside a one‑year rail fare freeze and an extension of the fuel duty cut.