How the Budget will affect you: Winners and losers from Rachel Reeves’ tax rises and new spending
The Budget explained – who wins, who loses and what it means for you
- Rachel Reeves' Budget included a freeze on income tax thresholds until 2030-31, which is expected to draw close to one million people into higher tax brackets, alongside a reduction in the cash ISA limit from £20,000 to £12,000, though those over 65 can still save the full amount in cash.
- The temporary 5p fuel duty cut has been extended until September next year, providing a benefit to drivers and consumers by helping to keep overall inflation lower, while the abolition of the two-child benefit cap is projected to support over half a million families.
- The National Living Wage for individuals aged 21 and over has increased to £12.71, offering a £900 annual gross earnings boost for full-time workers, with the National Minimum Wage for 18-20 year olds also rising to £10.85, resulting in a £1,500 annual increase.
- Business owners who pay themselves through dividends will face a two-percentage-point increase in dividend tax, making this method more costly, and landlords will be affected by an increase in tax on income from properties, which could lead to higher rents or property sales.
- A new "mansion tax" introduces an annual council tax surcharge for properties in England valued over £2 million, and electric vehicle drivers will now incur a £0.03-per-mile tax, a decision criticised for sending mixed signals to the industry and potentially impacting EV transition.