On 30 October 2024 Rachel Reeves delivered Labour's first Budget in 14 years, raising taxes by about £40 billion, chiefly through a 1.2-point increase in employers' National Insurance to 15% and a cut in the threshold at which it applies. She also revised the fiscal rules to permit roughly £25 billion a year more in capital investment funded by additional borrowing. The Office for Budget Responsibility judged the package would raise spending, tax and borrowing relative to prior plans while doing little for medium-term growth.
On 30 October 2024 Rachel Reeves delivered Labour's first Budget in 14 years, raising taxes by about £40 billion, chiefly through a 1.2-point increase in employers' National Insurance to 15% and a cut in the threshold at which it applies. She also revised the fiscal rules to permit roughly £25 billion a year more in capital investment funded by additional borrowing. The Office for Budget Responsibility judged the package would raise spending, tax and borrowing relative to prior plans while doing little for medium-term growth.
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The Budget mixes higher business taxes (which can pass through to prices and wages) with extra public investment and support; the net effect on household cost-of-living pressure is ambiguous, so direction is neutral.
