UK unveils significant tax rises in budget after shambolic' forecast leak

"United Kingdom Chancellor of the Exchequer Rachel Reeves has unveiled significant tax rises expected to raise 26.1bn pounds ($34.4bn) as she battles a downgrade in forecast economic growth. The presentation of her budget statement to parliament on Wednesday came after an unprecedented leak from the government's independent forecaster, the Office for Budget Responsibility (OBR), which published its economic and financial outlook early on its website, essentially signalling Reeves's measures in advance."

"The budget's biggest change in terms of money raised is freezing the tax levels into which earners are placed, meaning as wages rise, more people fall into higher tax brackets. The continued freeze on the income tax brackets and national insurance thresholds will pull 780,000 people into paying basic-rate income tax for the first time by the 2029-2030 fiscal year along with 920,000 more higher-rate taxpayers and 4,000 additional-rate payers."

"Reeves criticised the watchdog for the embarrassing blunder, which the OBR blamed on a technical error, saying it went live on our website too early this morning. This is deeply disappointing and a serious error on their part, she told lawmakers. Reeves faced the onerous task in the budget, her second since the Labour Party returned to power after 14 years, of restoring the UK's public finances while upholding Labour's election pledges requirements that left limited room to manoeuvre on taxes or spending."

Chancellor Rachel Reeves announced tax increases projected to raise £26.1bn as economic growth forecasts were downgraded. The Office for Budget Responsibility accidentally published its outlook early online, prompting criticism and an OBR explanation of a technical error. The budget aims to restore public finances while maintaining Labour's election commitments, prioritising stability over deep cuts or risky borrowing. The largest revenue measure freezes income tax bands and national insurance thresholds, shifting hundreds of thousands of taxpayers into higher brackets by 2029-30 and raising an estimated £8.3bn that year. Additional personal tax measures include around £4.7bn from national insurance changes related to salary arrangements.

Read at www.aljazeera.com