Chancellor Rachel Reeves has delivered her first major fiscal statement, outlining a Labour budget that brings significant changes to the UK's tax and benefits landscape.
Key Budget Announcements
In a move that will affect millions of households, Rachel Reeves has scrapped the controversial two-child benefit cap, marking a major shift in social security policy. The Chancellor also introduced a new "mansion tax" on high-value properties, targeting wealthier homeowners to increase government revenue.
Additional revenue-raising measures include higher income tax rates on savings, dividends and property income, though basic rates of income tax, VAT and national insurance remain unchanged. Reeves emphasised that this approach fulfils Labour's manifesto pledge not to raise taxes on working people.
Long-term Tax Threshold Freeze
As anticipated, the Chancellor confirmed that income tax thresholds will be frozen until the 2030-31 tax year. This measure, often described as a 'stealth tax', will gradually pull more people into higher tax brackets as wages increase over time without adjusting the thresholds for inflation.
Get Your Budget Questions Answered
The Guardian is inviting readers to submit their questions about how these budget measures will affect them personally and the wider economy. Our economics editor, Heather Stewart, will address queries about the economic impact of Reeves' policy choices, while money and consumer editor, Hilary Osborne will help explain what the changes mean for individual finances.
The service cannot provide individual financial advice, but aims to clarify how the budget's complex measures might impact different groups across the country. Readers aged 18 or over can share their questions anonymously through an encrypted form, with the Guardian committing to delete personal data after use.
