Rachel Reeves clobbers Brits with highest taxes EVER with £15bn income tax rise
# Rachel Reeves Hits Brits with Record-Breaking £15bn Tax Increase
## New Budget Sees Taxes Reach All-Time High Since World War II
The latest budget announcement from Shadow Chancellor Rachel Reeves introduces a staggering £15 billion increase in income tax, marking a new high for tax levels not seen since World War II. The Office for Budget Responsibility (OBR) has projected that the UK's tax-to-GDP ratio will skyrocket to 38.3% by 2030-31, largely as a result of policy changes enacted in this budget and prior years.
The implications of this tax hike are significant, with the OBR indicating that the UK’s public finances are now more vulnerable than ever to future economic shocks. "It still leaves the UK public finances relatively vulnerable to future shocks," stated the watchdog. Furthermore, the increase in tax burdens means that the UK will be using a greater proportion of its national income to pay off debt interest than at almost any time in its post-war history.
The conditions leading up to this budget have been described as “the most chaotic in living memory” by Conservative leader Kemi Badenoch. She noted the disarray surrounding the budget process, which has been characterized by numerous resignations and leaks, culminating in an "unprecedented leak" of OBR analysis just minutes prior to its announcement.
With the combination of rising taxes and weaker wage growth contributing to slower economic performance, the outlook for the UK economy appears challenging, leaving many citizens concerned about the burden being placed upon them. "Weaker medium-term real wage growth and rising taxes explain the slower growth," the OBR reported, highlighting the adverse effects these policy changes may have on economic expansion in the coming years.