The U.K. government has introduced a budget featuring substantial tax rises totaling £26.1 billion to address fiscal shortfalls and support economic stability.
This comes amid controversy over an early leak of forecast data by the Office for Budget Responsibility, which published its outlook prematurely due to a technical error.
Chancellor Rachel Reeves described the incident as deeply disappointing and a serious error.
The measures are part of efforts to restore public finances following Labour's return to power.
Key changes include extending the freeze on income tax and national insurance thresholds, projected to raise £8.3 billion by 2029-2030.
This will draw 780,000 more people into basic-rate tax, 920,000 into higher-rate, and 4,000 into additional-rate by that year.
Additional revenue will come from charging national insurance on salary-sacrificed pension contributions, raising £4.7 billion, and increasing taxes on dividends, property, and savings by 2 percentage points, adding £2.1 billion.
Other initiatives involve a mansion tax on homes over £2 million starting in 2028, expected to generate £400 million, and a 3 pence per mile charge on electric vehicles from April 2028, raising £1.4 billion.
Gambling duties on remote betting will rise from 21% to 40%, projected to yield over £1 billion by 2031.
Overall, the tax burden is forecast to reach 38.3% of GDP by 2030-2031, a record high.
The budget unfolds against downgraded growth projections, with the OBR adjusting 2025 GDP growth to 1.5% but lowering later years due to reduced productivity expectations.
Reeves attributed the outlook to previous Conservative policies and emphasized Labour's focus on stability.
To alleviate living costs, the budget removes the two-child benefit limit, lifting 450,000 children out of poverty.
It also includes measures to cut energy bills by £150 through removing green levies, freezing rail fares, fuel duty, and prescription fees.
These steps are expected to reduce inflation by 0.3 percentage points next year, amid current inflation at 3.6%.
Opposition figures criticized the leak as making Britain a laughing stock and called for accountability.
Reeves maintained that the plan would foster long-term growth through infrastructure investments.