Budget tax rises may be ‘fiscal fiction’ as pain delayed for election year, IFS warns

The chair of the Office for Budget Responsibility (OBR), Richard Hughes, expressed his mortification over the early release of budget forecasts, which was attributed to a technical error. An inquiry has been initiated to investigate how the documents were inadvertently made accessible before the official announcement by Chancellor Rachel Reeves.

Chancellor Rachel Reeves has presented the UK Budget for 2025, which includes a £26 billion tax increase and increased welfare spending aimed at addressing the ongoing cost of living crisis. This budget is a significant move for the Labour government as it seeks to balance fiscal responsibility with the needs of citizens facing economic challenges.

Chancellor Rachel Reeves has announced the removal of tax breaks on insurance and advance payments for high-end Motability cars as part of the recent UK budget. This decision has sparked concerns among users of the Motability scheme, who feel judged for their vehicle choices amidst rising living costs.

The National Union of Students (NUS) has raised concerns over a three-year freeze on the student loan repayment threshold, set to remain at £29,385 starting April 2027. This decision could force graduates in low-paid jobs to repay their loans sooner, potentially impacting their ability to manage essential living costs such as food and rent.

Chancellor Rachel Reeves announced a budget that includes a £26 billion tax increase and the scrapping of the two-child benefit cap, which she described as a long-standing ambition. Prime Minister Keir Starmer defended the budget, asserting that it adheres to the Labour Party's manifesto commitments despite the significant tax rises aimed at addressing the UK's cost of living crisis.

The Institute for Fiscal Studies (IFS) has reported that average disposable income in the UK is projected to increase by only 0.5% annually over the next five years, indicating a dismal outlook for household spending power. This stagnation in income growth raises concerns about the financial well-being of families across the country.

The Office for Budget Responsibility (OBR) has called in a cyber expert to investigate a premature release of Budget analysis documents, which disrupted Chancellor Rachel Reeves's planned statement. Journalists accessed the sensitive information ahead of the official announcement, leading to a chaotic situation for the Labour government.

UK Finance Minister Rachel Reeves has unveiled a new budget that raises taxes for ordinary workers while increasing government spending on social welfare programs. The plan aims to elevate the government's tax revenue to a post-war high of 38% of GDP by 2031, as reported by the Office for Budget Responsibility (OBR). This budget is set to be a pivotal moment for the Labour government amid ongoing economic challenges.