Budget 2024: UK taxpayers face £40bn tax hikes

Chancellor Rachel Reeves set out a Budget which will raise taxes by £40bn as she promised to “fix the foundations” of the economy and repair the public finances.

In the first Labour budget since 2010 – and the first ever delivered by a woman – Ms Reeves promised to “invest, invest, invest”.

But she said the “black hole” left by the Conservatives required tens of billions of additional taxes.

READ MORE:UK Budget 2024 LIVE updates as Rachel Reeves announces £40bn tax rise with changes to benefits and pensions

Ms Reeves claimed the scale of the public spending problems she inherited were worse than previously thought.

She said the £22 billion “black hole” left by the Tories in this year’s finances showed they “hid the reality of their public spending plans”, with problems recurring in future years.

Ms Reeves also promised to set aside £11.8 billion to compensate those affected by the infected blood scandal and £1.8 billion to compensate victims of the Post Office Horizon scandal.

The Chancellor said: “Together, the black hole in our public finances this year, which recurs every year, the compensation payments which they did not fund and their failure to assess the scale of the challenges facing our public services means this Budget raises taxes by £40 billion.

“Any Chancellor standing here today would face this reality. And any responsible Chancellor would take action. That is why today, I am restoring stability to our public finances and rebuilding our public services.”