UK Chancellor Rachel Reeves has announced tax increases aimed at raising £26.1bn ($34.4bn) amid revised economic growth forecasts by the OBR, which faced criticism for an early leak of the budget details. Key measures include freezing income tax thresholds, introducing a mansion tax, and increasing gambling duties, with the tax burden projected to reach a record 38.3% of GDP by 2030-2031. Despite a slight upgrade in GDP growth for 2025, long-term projections have been downgraded due to lower productivity expectations. The budget’s timing is politically sensitive for Labour, as Prime Minister Keir Starmer faces internal party challenges.
