Rachel Reeves has announced an annual increase of £26 billion in taxes in a Budget that was leaked just moments before its official release.
The Chancellor revealed a new mansion tax targeting properties valued over £2 million and confirmed the removal of the two-child benefit restriction, addressing demands from anti-poverty advocates.
Additionally, income tax thresholds will be frozen, impacting over 1.5 million workers, while the gambling sector will face increased levies. Fuel duty will remain unchanged until the following year, as stated by Ms. Reeves.
Addressing the House of Commons, Ms. Reeves stated, “These are the decisions I have made. They are the right decisions for a fairer, stronger, and more secure Britain.”
Examining the key highlights from the Chancellor’s much-anticipated Budget, The Mirror presents the details.
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The Chancellor has introduced a new tax on properties exceeding £2 million.
This measure is estimated to impact between 100,000 and 200,000 properties, with an annual charge ranging from £2,500 to £7,500, projected to generate approximately £400 million annually for the Treasury.
Included in the Budget is a “high value council tax surcharge” on properties valued over £2 million.
Responding to this, the OBR stated, “Starting April 2028, owners of properties identified as valued over £2 million will face an additional annual charge on top of existing council tax obligations. The surcharge will be tiered, with amounts ranging from £2,500 to £7,500 based on property valuation bands.”
In a significant move, the Chancellor has scrapped the controversial two-child benefit limit, recognized for contributing to child poverty.
Initially introduced by the Conservatives in 2017, this policy restricts child tax credits and universal credit to the first two children in a family. OBR data indicates an estimated cost of £3 billion by 2029-30, with a projected reduction of child poverty by 450,000.
Labour MPs and former Prime Minister Gordon Brown have long advocated for the removal of this policy, which has caused internal tensions within the party. Ms. Reeves also announced that benefits will be adjusted for inflation in April.
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