Chancellor Rachel Reeves don deliver Labour first Budget since 2010, after di party return to power for July general election.
She announce tax rises worth £40bn to fund di NHS and oda public services.
Dis na di summary of di main measures.
Personal taxes
- Rates of income tax and National Insurance (NI) paid by employees, and of VAT, go remain unchanged
- Income tax band thresholds go rise in line with inflation after 2028, dis go prevent more pipo from being dragged into higher bands as wages rise
- Basic rate capital gains tax on profits from selling shares go increase from 10% to 18%, and di higher rate go rise from 20% to 24%
- Rates on profits from selling additional property go dey unchanged
- Inheritance tax threshold freeze dey extended by further two years to 2030, with unspent pension pots also subject to di tax from 2027
- Exemptions wen inheriting farmland go become less generous from 2026
Business taxes
- Companies go pay NI at 15% on salaries above £5,000 from April, up from 13.8% on salaries above £9,100, raising an additional £25bn a year
- Employment allowance – wey allow smaller companies to reduce dia NI liability – to increase from £5,000 to £10,500
- Tax paid by private equity managers on share of profits from successful deals go rise from up to 28% to up to 32% from April
- Main rate of corporation tax, paid by businesses on taxable profits over £250,000, go stay at 25% until next election
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Wages, benefits and pensions
- Legal minimum wage for over-21s go rise from £11.44 to £12.21 per hour from April
- Rate for 18 to 20-year-olds go go up from £8.60 to £10, as part of a long-term plan to move towards a “single adult rate”
- Basic and new state pension payments go go up by 4.1% next year due to di “triple lock”, more than working age benefits
- Eligibility dey widened for di allowance dem dey pay to full-time carers, by increasing di maximum earnings threshold from £151 to £195 a week
Transport
- Dem keep for anoda year, 5p cut in fuel duty on petrol and diesel wey di Conservatives bin bring in, wey go end in April 2025
- £2 cap on single bus fares for England go rise to £3 from January, outside London and Greater Manchester
- Commitment to fund tunnelling work to take HS2 high-speed rail line to Euston station for central London
- Goment say dem go “secure di delivery” of Transpennine rail upgrade between York and Manchester, after reports ministers dey look into to cut costs
- Air Passenger Duty go go up in 2026, by £2 for short-haul economy flights and £12 for long-haul ones, and rates for private jets go go up by 50%
- Extra £500m next year to repair potholes for England
- Vehicle Excise Duty wey owners of all except di most efficient new petrol cars go double in dia first year, to encourage shift to electric vehicles
Drinking and smoking
- New flat-rate tax of £2.20 per 10ml of vaping liquid introduced from October 2026, as ministers throway Tory plans to link di levy to nicotine content
- Tax on tobacco go increase by 2% above inflation, and 10% above inflation for hand-rolling tobacco
- Tax on non-draught alcoholic drinks go increase by di higher RPI measure of inflation, but tax on draught drinks cut by 1.7%
- Goment go review thresholds for sugar tax on soft drinks, and consider to extend am to “milk-based” beverages
Goment spending and public services
- Day-to-day spending on NHS and education in England go rise by 4.7% in real terms dis year, before smaller rises next year
- Defence spending go rise by £2.9bn next year
- Home Office budget go shrink by 3.1% dis year and 3.3% next year in real terms, due to assumed savings from asylum system
- £1.3bn extra funding next year for local councils, wey go also keep all cash from Right to Buy sales from next month
Housing
- Social housing providers go dey allowed to increase rents above inflation under multi-year settlement
- Discounts for social housing tenants to buy dia property under di Right to Buy scheme go dey reduced
- Stamp duty surcharge, paid on second home purchases in England and Northern Ireland, to go up from 3% to 5%
- Point wia house buyers go start to pay stamp duty on a main home go drop from £250,000 to £125,000 in April, reversing a previous tax cut
- Threshold wey first-time buyers dey take pay di tax go also drop back, from £425,000 to £300,000
- Current affordable homes budget, wey dey run until 2026, go dey boosted by £500m
UK growth, inflation and debt
- Office for Budget Responsibility (OBR) predict say di UK economy go grow by 1.1% dis year, 2% next year, and 1.8% for 2026
- Inflation predicted to average 2.5% dis year, 2.6% next year, before falling to 2.3% for 2026
- Official definition of UK goment debt go dey loosened by including a wider range of financial assets, such as future student loan repayments
- Budget policies go increase UK borrowing by £19.6bn dis year and by an average of £32.3bn over di next five years, according to di OBR
Oda measures
- £11.8bn dey allocated to compensate victims of di infected blood scandal, with £1.8bn set aside for wrongly prosecuted Post Office sub-postmasters
- Goment go stop receiving surplus cash from pension scheme for mineworkers
- Extra spending in England go lead to £3.4bn more for Scotland, £1.7bn more for Wales, and £1.5bn more for Northern Ireland in devolution payments
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