Watch: Starmer and Reeves speak after Labour’s £40bn tax-raising Budget
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Watch as Sir Keir Starmer and Rachel Reeves deliver remarks during a visit to the West Midlands after the Budget announcement on Wednesday.
The chancellor has unveiled Labour’s first Budget in 14 years, making history as the first woman to lead the fiscal event.
Ms Reeves had made no secret of the difficult task she faced, with her announcement set against the backdrop of the £22bn ‘black hole’ in public finances she says was left behind by the previous Tory government.
She revealed new taxation measures that aim to raise £40bn — the highest since 1993 — including an increase in employer national insurance contributions, capital gains tax, and changes to inheritance tax.
On Thursday, Ms Reeves admitted the employer national insurance increase could hit workers’ pay.
Asked whether the move is a jobs tax which will take money out of people’s pockets, the chancellor told BBC Radio 4’s Today programme: “This will have an impact in wage growth, for example.
“Look, what alternative was there? We had a £22 billion black hole in the public finances.”
She later added: “I did not want to increase the key taxes that working people pay: income tax, VAT and employee national insurance. So we have increased national insurance on employers.”
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments