Tax calculator: Work out how Rachel Reeves’ Budget will affect your finances
After weeks of leaks and wild speculation, Rachel Reeves unveiled her second Budget in a speech to the House of Commons on Wednesday afternoon.
The Labor Chancellor has announced an end to two controversial child benefit caps, as well as a series of tax rises and spending cuts, in a highly anticipated fiscal event.
Around 1.7 million earners will pay more tax until 2029/30 after Ms Reeves announced Labor would extend the freeze on income tax thresholds for another three years until 2030/31.
The highly speculative ‘mansion tax’ has also emerged, introducing a new council tax surcharge for owners of high-value homes.
This comes with a change to how salary sacrificed pension contributions work. From 2029, the pension boost option for employees will now be subject to national insurance contributions above £2,000.
The measures will leave the government with a £22bn fiscal gap and come on top of the £40bn tax rises announced last year. They will increase tax revenues to an all-time high of 38 percent of GDP in 2030/31.
To use The Independent Budget calculator created by tax consultancy Blick Rothenberg to calculate what the announcements mean for you:
