Rachel Reeves’s 2025 budget raises taxes to record levels and keeps income tax thresholds frozen, which economists say leads to weak growth and “dismal” living standards as workers become thousands of pounds worse off.
Experts at the Institute for Fiscal Studies and the Resolution Foundation warn that the plans break Labour’s pledge not to raise taxes on working people, with millions pushed into higher tax bands and typical earners losing more money by 2030.
The government says the tax rises are fair and needed to fund higher welfare spending, critics describe the budget as “spend now, pay later”, with most tax increases coming after 2029 and deep spending cuts expected later in the Parliament.
Ian Collins interviews ‘Director of Communications at the I.E.A. & Former Special Adviser’, Callum Price.
Credit to : TalkTV