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The Chancellor detailed her government’s plan to boost trade, investment, innovation, and support working people. She announced widening eligibility for enterprise incentives, expanding the Enterprise Management Incentive scheme, re-engineering EIS and VCT schemes, and introducing UK listings relief. The chancellor also announced reforms to ISA system from April 2027, retaining a full £20,000 allowance while designating £8,000 exclusively for investment. She stated her commitment to retain the lowest G7 corporation tax rate and introduced a new 40% first year allowance for businesses.
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The Labour Government is committed to economic growth through targeted investments. These include £13 billion of flexible funding for mayors across seven regions, business rates retention pilots in the west of England and Liverpool city region until 2029, a £30 million investment in the Kernow industrial growth fund, and the establishment of the Leeds city fund to support local regeneration projects.
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The Labour Government also invests heavily in sectors like nuclear power at Sizewell C and Culham, reducing electricity prices for manufacturing businesses. The government will provide further funding to increase planning capacity and implement John Fingleton’s report on cutting red tape for the nuclear industry.
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Defence investments include supporting initiatives like Team Derby in Leeds, saving British Steel in Scunthorpe, and changing procurement policies to buy British when necessary. The government is also building the UK’s first small modular nuclear reactors with Rolls-Royce at Wylfa in Wales.
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The benefits of investment must be felt across all regions, including £370 million for Northern Ireland, £505 million for the Welsh Government, and £820 million for Scotland over the spending review period.
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The fiscal rules ensure economic stability by maintaining a balance between borrowing and tax receipts. The Labour Government is reducing public sector net borrowing while supporting investment, with plans to move into surplus by 2028-29.
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Contrasting the current government's policies, the Labour Government protects the economy and reduces debt inherited from previous Conservative administrations. They are delivering on promises to improve public services like schools and hospitals through targeted investments.
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Reeves emphasised the importance of addressing fraud, waste, and inefficiency in public spending. She announced reforms to claw back excess profits from hotels used for asylum seekers and proposed measures against illegal migration and working. Additionally, she outlined plans to reform the welfare system by reintroducing face-to-face assessments and changes to universal credit that would help 15,000 people return to work. Reeves also mentioned funding apprenticeships for young people under 25 and reforms to Motability scheme to reduce luxury vehicle subsidies.
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The Chancellor's Budget introduces a high value council tax surcharge for properties worth over £2 million to tackle wealth inequality. The Government also plans to cap salary sacrifice contributions at £2,000 and introduce reforms in business tax relief, support for small businesses, motoring taxes, taxi industry competition, landfill tax, loan charge settlement, tobacco duties, alcohol duties, vaping products duty, gambling taxes, and child poverty reduction policies such as ending the two-child limit on welfare benefits.
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Calls for an increase in tax to address the cost of living concerns.