British Chancellor Rachel Reeves revealed on Wednesday the new budget, stating that it will "permanently increase the supply capacity of the economy, boosting long-term growth." She said it will raise taxes by £40 billion in order to cover the "£22 billion black hole in our public finances" she claimed was created by the previous government. The lower rate for capital gains tax will grow from 10% to 18% and the higher rate from 20% to 24%, while National Insurance contributions for employers will rise from 13.8% to 15% in April 2025.
"Any chancellor standing here today would face this reality. And any responsible chancellor would take action. That is why, today, I am restoring stability to our public finances and rebuilding our public services," Reeves said. She announced the Labour government will increase the minimum wage by 6.7% to £12.21. It will also not increase fuel duty next year, instead maintaining the existing 5p cut for another year.