Reeves vows to put ‘more pounds in people’s pockets’

The Chancellor, Rachel Reeves, has unveiled a series of revenue-rising announcements in her maiden Budget as she vowed to put “more pounds in people’s pockets”.

Reeves slammed previous Government as ‘height of irresponsibility’ for vowing to cut National Insurance, but said there will be no increase on National Insurance or income tax on individuals beyond 2027/28. She said this was “a promise made and fulfilled”.

The much-heralded rise in Capital Gains Tax (CGT) saw the lower rate increase from 10% to 18% and higher rate from 20% to 24%. Reeves said she will maintain rates of CGT on residential property at 18% & 24%. This, she said, will raise £2.5bn a year by 2029/30.

Meanwhile, the much-touted move to slap VAT on private school fees will be introduced from 1 January next year. Reeves said that this will pay for more teachers for state schools and raise £9bn.

Reeves said she extend the threshold freeze on inheritance tax until 2030, but that she will bring inherited pensions into inheritance tax from 2027.

There was good news for workers, if not some employers, after the Chancellor announced that the minimum wage will be increasing by 6.7% to £12.21, while for those aged 18-20 will get a hefty 16.3% boost to £10 an hour.

The Chancellor said that the stamp duty land tax surcharge for second homes will increase by 2% points to 5%, and will come into effect from Thursday (October 31).