First female finance minister
London wants to save billions: raise taxes, reduce spending
It is a historic budget that will be presented in London: the first by a Social Democratic government in around 15 years – and for the first time ever by a woman.
In the fight against a huge budget gap, the British government wants to raise a total of 40 billion pounds (approx. 48 billion euros) through tax increases. Finance Minister Rachel Reeves criticized the previous government for leaving a budget gap of £22 billion and withholding important information from the independent regulator OBR.
Commentators spoke of a historic budget: Reeves is the first woman in history to head the British Treasury.
“Any Chancellor of the Exchequer standing here today would have to face this reality and every responsible Chancellor of the Exchequer would have to take action,” the incumbent said in Parliament in London. All ministries should save 2 percent in their departments, and significantly more loans should be taken out than planned. The supervisory authority only expects annual economic output to grow by a maximum of 2 percent by 2029.
It is the first time in around 15 years that the Labor Party has presented a budget. Prime Minister Keir Starmer’s Social Democrats are in government for the first time since 2010.
The minister promised that workers would have more money at their disposal. Income tax and VAT will not increase, and the minimum wage will be significantly increased. The Chancellor said she wanted to “invest, invest, invest” to rebuild Great Britain.
A lot of investment necessary
The government wants to invest billions in the NHS, schools, prisons and infrastructure. Victims of two major scandals are to receive a total of around 13.5 billion pounds in compensation. Fuel tax remains frozen.
Reeves wants to finance these measures primarily with higher taxes for companies. An increase of 1.2 percent in the employer’s share of social security is expected to bring in £25 billion. The government hopes to raise £2.5 billion from an increase in capital gains tax, and the tax on tobacco products as well as the tax on sugary drinks and air travel will also be increased.
Tax loopholes for private schools will be closed to invest £9 billion in state schools. The federal government is demanding an exception for the German School London.
dpa
Source: Stern
I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.
