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Chancellor Proposes £26 Billion Tax Hike Amid Borrowing Concerns

12/2/2025

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Summary

Story summary

The Budget proposes £26 billion in tax increases and extends the freeze on income tax and National Insurance thresholds.
Chancellor Reeves warned of a productivity downgrade and concerns about meeting borrowing rules.
The Office for Budget Responsibility (OBR) said the government could meet its borrowing target by £4.2 billion due to higher wages.

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Story summary

The Budget proposes £26 billion in tax increases and extends the freeze on income tax and National Insurance thresholds.
Chancellor Reeves warned of a productivity downgrade and concerns about meeting borrowing rules.
The Office for Budget Responsibility (OBR) said the government could meet its borrowing target by £4.2 billion due to higher wages.