Nov 03, 2024 (MENAFN via COMTEX) --
(MENAFN) On Wednesday, the UK Treasury chief presented Labor's fiscal plan for the upcoming years, committing to tax hikes aimed at generating USD52 billion annually and promising unprecedented investment in the National Health Service (NHS).
This budget represents the first Labour Autumn Statement since 2009 and outlines a mix of tax reforms and significant spending increases designed to strengthen public services while tackling the nation's debt. A key element of Chancellor of the Exchequer Rachel Reeves'budget is the increase in National Insurance contributions for employers, which will rise by 1.2 percentage points to 15 percent starting April 2025.
Reeves anticipates that this measure alone will generate USD32,43 billion annually for the government. In an effort to protect low-income workers, Reeves confirmed that the current freeze on income tax and National Insurance thresholds will conclude in 2028.
She informed the House of Commons that "This is about avoiding undue pressure on working people," Other tax reforms include an increase in Capital Gains Tax and the introduction of VAT on private school fees beginning in January, a long-discussed measure within Labour.
Fuel duty will stay frozen next year, a choice that will maintain stable costs for drivers amid wider economic challenges. To support low-wage earners, Reeves reiterated the previous day's announcement that the least wage will increase in April.
She also vowed to reduce duties on draught beer, promising "a penny off pints at the pubs". To aid local establishments and promote social interaction. Reeves detailed a USD 29,32 billion boost to the NHS's operational budget, alongside USD 6,48 billion earmarked for housing investment.
The NHS funding bundle contains USD 1,29 billion specifically designated for addressing a backlog of essential repairs and upgrades across NHS facilities, aimed at increasing capacity for thousands of additional procedures.
"This funding is dedicated to restoring NHS infrastructure and addressing years of underinvestment," Reeves emphasized. She also declared extra USD 1,94 billion for new hospital beds and more than a million diagnostic tests, beside new medical and diagnostic hubs to tackle extensive waiting list.
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COMTEX_459427742/2604/2024-11-03T16:02:28
