Among the proposals is an increase in the minimum wage to £12.21 per hour
Rachel Reeves is set to make a commitment to increase “more pounds in people’s pockets”, address NHS issues, and stimulate economic growth in Labour’s upcoming first Budget, despite cautioning that difficult choices lie ahead. The Chancellor, who is the first woman to serve in this capacity, will emphasise that there are “no short cuts” to achieving the economic growth Labour aims for, other than through investment.
In her forthcoming speech, Ms Reeves is anticipated to highlight the significant “prize on offer” if Labour’s plans succeed, detailing new investments aimed at reducing hospital waiting times, facilitating more affordable housing, and renovating deteriorating schools. She has signalled that even considering tax rises and borrowing increases, it may not be sufficient to repair “14 years of damage” inflicted on the NHS, despite intentions to inject billions into the healthcare system.
Among the proposals is an increase in the minimum wage to £12.21 per hour, and Labour has also vowed not to raise the main taxes affecting the earnings of “working people”: national insurance, VAT, and income tax. In conjunction with its Budget scrutiny, the fiscal watchdog, the Office for Budget Responsibility (OBR), is slated to release a report on the Conservative government’s legacy, which is expected to explain the so-called £22 billion “black hole” in public finances.
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Despite ministerial warnings that the Budget will necessitate hard decisions regarding tax hikes and spending reductions, Ms Reeves is predicted to assert: “My belief in Britain burns brighter than ever. And the prize on offer to today is immense.”
Chancellor Rachel Reeves is set to make a stirring pledge promising economic rebuilding and support for the nation. “More pounds in people’s pockets. An NHS that is there when you need it. An economy that is growing, creating wealth and opportunity for all. Because that is the only way to improve living standards. “
“And the only way to drive economic growth is to invest, invest, invest. There are no short cuts. To deliver that investment we must restore economic stability.”
Linking her party’s mission with historic Labour governments, Ms Reeves will assert:L “It’s not the first time that it has fallen to the Labour Party to rebuild Britain”.
Today, I reiterate our commitment: “This Labour Party, this Labour Government, will rebuild Britain once again,” she will declare. In recent updates, the Chancellor has announced a significant rise in the minimum wage by 6.7%, taking it up to £12.21 an hour from next year.
This uplift, as proposed by the Low Pay Commission, will result in an annual increase of around £1,400 for a full-time worker on the national living wage starting April. A point of contention remains with the Conservatives criticising the limitation of the winter fuel allowance to just the poorest pensioners.
The Shadow Work and Pensions Secretary Mel Stride emphasised the opposition’s position, citing a petition against the limit which has garnered “over a quarter of a million signatures”. Stride expressed concerns that “many” pensioners will “really, really struggle” without broader support.
Ms Reeves announced this restriction as one aspect of a plan designed to bridge what has been reported as a £22 billion deficit in public finances.
Shadow Chancellor Jeremy Hunt is challenging a forthcoming report on the so-called fiscal black hole, which is expected to be published alongside the Budget. He has sent a letter to Simon Case, the UK’s top civil servant, criticising the Office for Budget Responsibility (OBR) for potentially “straying into political territory and failing to follow due process” with its intention to release findings on the consequences of Conservative spending. This move comes after Labour’s Anneliese Reeves claimed she discovered £22 billion in unaccounted-for spending when her party took office.
