Rachel Reeves Unveils Britain’s First Labour Budget in 14 Years
In a headline‑making announcement, Chancellor Rachel Reeves rolled out her financial roadmap for the UK, setting the stage for a government debt of £127 billion and a tax‑haul of £40 billion to shore up the public purse.
Key Numbers at a Glance
- Borrowing hit a new high: £127 billion.
- Tax revenue boost in the pipeline: £40 billion.
- Inflation‑adjusted tobacco levy rises by 2%.
- Hand‑rolled tobacco sees a 10% hike.
Mike Salem Weighs In
Mike Salem, UK Country Associate for the Consumer Choice Center (CCC), didn’t hold back—his words sounded like a public shout‑out from a couch‑dawning coffee shop:
- “Reducing the price of a pint by 1p doesn’t show you’re gently nudging consumers.” He called it a “bad joke” that ignorantly glosses over the cost‑of‑living rally.
- “Why raise taxes on non‑draught drinks and sugary soft drinks?” Salem argued that these levies bite the lower‑income the most, especially when the rest of the product range is tightening its grip on pockets.
- The new liquid vape bottle tax sends a confusing signal to smokers trying to quit. Reeves had to add a one‑off bump to the tobacco levy so vaping stays cheaper than smoking, while simultaneously pushing tobacco taxes up.
- “Reeves is punishing consumers who spend their own money,” Salem declared, dubbing the taxes a cash grab from the hard‑working British.
- He warned of a capital gains tax increase that hits both young and old, and a hike in National Insurance contributions for employers, which could make hiring a nightmare and squeeze household incomes further.
Bottom Line: A Budget That Sinks Growth
Summing up, Salem cautioned that the budget moves are likely to dent economic growth and leave Britons backward compared to their international neighbors.
