Labour Chancellor Rachel Reeves has unveiled the party’s first Budget since taking office, marking a return to power after 14 years.
Ms Reeves outlined her vision for revitalising the UK economy, focusing on long-term investment as the path to sustainable growth and improved living standards.
Rachel Reeves said that economic growth can only be achieved through “investment, investment, investment.”
Ms Reeves emphasises the importance of restoring stability and moving beyond the challenges of the past 14 years.
The Chancellor highlights the significance of this Budget as the first in British history presented by a woman, expressing her pride in being the country’s first female Chancellor.
Reeves has announced that this budget includes a £40 billion increase in taxes.
The Chancellor states that her primary goal is to achieve growth.
Rachel Reeves confirms her commitment to her established economic rules.
The “stability rule” ensures that the government will not rely on borrowing to cover day-to-day spending.
The Chancellor has also announced her decision to extend the freeze on fuel duty, noting that this measure will cost nearly £3 billion.
Rachel Reeves has announced that the government is dedicated to transforming Britain into a leader in clean energy.
A long term investment will be launched to advance carbon capture and storage initiatives.
Eleven new green hydrogen projects will receive funding across England, Scotland, and Wales, marking some of the world’s earliest commercial-scale developments of their kind.
These projects are set to take root in various communities, including Bridgend, East Renfrewshire, and Barrow-in-Furness.
Ms Reeves also shared that the government will establish GB Energy, with initial funding planned for next year to set up its base in Aberdeen, Scotland.
Over the next five years, Great British Energy is expected to receive £8.3 billion from the National Wealth Fund.
The budget outlined today includes £134 million to enhance port infrastructure, supporting the development of floating wind technology.
A total of £3.9 billion has been allocated for 2025/26 to kickstart the UK’s first carbon capture and storage clusters.
In a statement shared by the Treasury, Rachel Reeves expressed confidence in Britain’s potential. “My belief in Britain burns brighter than ever,” she stated, urging investment as the primary means to address economic challenges.
Ms Reeves emphasised the need for “more money in people’s pockets,” a responsive NHS and a fairer distribution of opportunity.
“There are no shortcuts,” she added, calling for a renewed commitment to stability as the foundation for attracting essential investment.
Prime Minister Sir Keir Starmer said: “After 14 years of decline, we will invest in our country – rebuilding our schools, hospitals and roads.
“We won’t shy away from the tough decisions to grow our economy and protect working people’s payslips. There is a brighter future ahead.”
