Labour's 'Rebuild Britain' Budget: A Bold New Era

Rachel Reeves, UK's first female Chancellor, presented Labour's inaugural Budget, emphasizing investment, tax reforms, and public service funding. Key changes include tax hikes and a new tax regime for non-domiciled residents. The NHS benefits significantly, while Labour criticizes the former government's policies.

Rachel Reeves, the UK's first female Chancellor of the Exchequer, unveiled Labour's inaugural Budget in Parliament, focusing on a 'Rebuild Britain' theme. With a decisive call to 'invest, invest, invest', the Budget includes 40-billion pounds in tax hikes aimed at addressing long-standing financial challenges.

Key measures include a 25-billion pounds rise in employers' national insurance contributions, alongside changes in inheritance and capital gains taxes. Reeves announced a significant overhaul of the non-domiciled tax regime, moving to a residence-based system by April 2025. The National Health Service emerges as a major beneficiary, receiving 22.6 billion pounds for operational spending over two years.

Under the Budget, Labour aims to redirect economic policies away from prior Conservative government strategies. Reeves criticized the former leadership for austerity measures and aligning tax thresholds with inflation by 2028-29. The move has sparked political rebuttals, with former opposition leader Rishi Sunak accusing Labour of deceiving voters.

(With inputs from agencies.)