"On a chaotic day that involved key details of her budget accidentally being released early by the Office for Budget Responsibility (OBR), the chancellor defended the measures, saying she was asking everyone to make a contribution to repair the public finances, but that she wanted the wealthiest to pay the most. While insisting she had avoided reckless borrowing and dangerous cuts, the budget will push the tax take to an all-time high of 38% of GDP in five years' time."
"More than 1.7 million workers will be dragged into either paying tax for the first time or pushed into a higher band by an additional three-year freeze on income tax and national insurance thresholds that Reeves conceded would hit working people but bring in 12.4bn by 2030-31. Some Labour MPs privately expressed alarm at the extent to which the budget would hit the so-called squeezed middle including more nurses, teachers and police officers paying the higher rate tax."
Budget raises £26bn by targeting the wealthiest households and funding scrapping the two-child benefit policy and cuts to energy bills. Key details were accidentally released early by the Office for Budget Responsibility. A three-year freeze on income tax and national insurance thresholds will push more than 1.7 million workers into paying tax or into higher bands and is expected to raise £12.4bn by 2030-31. The tax take will reach 38% of GDP in five years. Measures include a council tax surcharge for properties over £2m, a 2p rise on dividend, savings and property income, and a £2,000 cap on salary-sacrifice pension contributions from 2029, yielding about £4.7bn a year. The changes intensify fiscal drag, increasing higher-rate taxpayers to 24% and raising concern about impacts on middle earners such as nurses, teachers and police.
Read at www.theguardian.com
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