Britain's Historic Tax Hike Amid Economic Challenges

Britain's finance minister, Rachel Reeves, unveiled the largest tax hike in 30 years, targeting businesses and the wealthy to fill a budget 'black hole' inherited from the previous Conservative government. While pledging investment to boost the economy, Reeves aims to stabilize public finances without ballooning public debt.

Rachel Reeves, Britain's new finance minister, has imposed the largest tax increases seen in the UK for three decades, blaming the previous Conservative government for failing public services. Announcing her first budget, Reeves also set the stage for increased borrowing intended for long-term economic revival.

Reeves, who is Britain's first female chancellor of the exchequer, highlighted her commitment to prevent uncontrollable public debt, recalling former PM Liz Truss's 2022 financial debacle caused by unfunded tax cuts. Investors showed little initial concern, but British bond prices eventually fell as her plans unfolded.

Reeves' budget aims to raise taxes by £40 billion annually, primarily affecting businesses and wealthy individuals. Despite new fiscal policies, including social security hikes for employers, she emphasized Britain's continued struggle with suboptimal economic growth and public service issues.

(With inputs from agencies.)