There was a lot of anticipation by political commentators that the first Labour government budget for 15 years would become a “halloween horror” for everyone.
When the measures were finally announced by Chancellor Rachel Reeves, some of those same commentators gave a collective shrug. It was a mixed budget, with the government hope to raising £40billion to cover the problems left by the Conservatives.
Here are some of the main points of the budget:
- Income tax, VAT and NI contributions for employees will remain frozen;
- Capital gains tax rates will rise;
- Corporate tax rates will remain frozen until at least the next election;
- Single bus transport fare cap to rise from £2 to £3;
- The Minimum wage will increase from £11.44 to £12.21 an hour;
- Taxes will rise for vaping, tobacco and some alcohol drinks;
- Extra funding for public services, including £22billion for the NHS, and £6.7billion for education;
- Defence spending will increase by £2.9billion;
- The devolved nation parliaments (Scotland, Wales, Northern Ireland) also been given extra funds.
As a whole, public spending will increase overall. No doubt the opposition parties will criticise some of the measures, but at least the virtual political wolves are being kept away from the door of No11….for now.