In order to finance the NHS and other public services, she planned tax increases of £40 billion.
The key measures are outlined here.
“We don’t want to repeat this budget,” Reeves says.
The impact of the budget on you and your finances
Schools, the NHS, and transportation: Where budgetary commitments are being used
Go here to read more about budget coverage.
Individual taxes
Employee income tax and National Insurance (NI) rates, as well as VAT rates, will not change.
After 2028, income tax band levels will increase in accordance with inflation to avoid pushing more people into higher bands as salaries increase.
Capital gains tax on income from the sale of shares will increase from 10% to 18% at the basic rate and from 20% to 24% at the higher rate.
Profit margins from selling more real estate remained constant.
The two-year inheritance tax threshold freeze has been extended to 2030, and as of 2027, unspent pension funds are also liable to the tax.
Farmland inheritance exemptions will become less generous starting in 2026.
What changes are being made to the inheritance tax laws?
How much do companies and employees pay for NI, and what is it?
Taxes for businesses
Businesses will pay NI at a rate of 15% on earnings over £5,000 starting in April, up from 13.8% on salaries over £9,100, which will generate an extra £25 billion annually.
