Budget 2024 live: Rachel Reeves admits tax rises will impact wage increases for workers

Chancellor Rachel Reeves acknowledges that her £40bn tax-raising Budget may impact wage growth for workers, as businesses may need to absorb costs through reduced profits leading to potentially lower wage increases. Despite this, the Office of Budget Responsibility predicts an increase in household incomes during this Parliament. The IMF supports the Budget’s investment and spending on public services, while IFS director Paul Johnson warns of the need for further tax rises in the future and questions the feasibility of the spending plans.

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