Regardless of how you may feel about today’s Budget, I will celebrate the fact that this was the first time a woman delivered the fiscal statement.
But was this a Budget that will rescue Britain from the failures of the previous government over the past 14 years? And more so, who’s going to pay for it?
While the Budget was perhaps not as painful as we feared, the biggest hit is the middle and high-income earners. But everyone is going to pay in one way or another as Reeves looks to claw back as much as she can into the Treasury’s reserve fund, which she claimed was spent three times over by the previous government.
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Taxing the wealthy
If you’re a private jet user, then you’re probably as angry as the former prime minister, Rishi Sunak, was when he delivered his post Budget opposition comments.
Reeves has adjusted all Air Passenger Duty rates for 2026/27, adding £2 for short haul economy flights. But, higher rates for private jets will increase by 50% and the government is consulting on extending the higher rate to include more private jets.
But it’s not just private jet users. There is a squeezed middle who will feel the pinch – not necessarily wealthy, but they could be taken from a point of comfort to maybe uncomfortable or stretched.
Parents with kids at private school are also taking a hit as Reeves reconfirmed Labour’s pledge to add VAT to private school fees and remove the business rate relief.
And she wasted no time with taxes. As of today, you’ll pay more in Capital Gains Tax (CGT) – these are profits you make from shares or assets when you sell them.
The lower rate of CGT will rise from 10% to 18% and higher rate from 20% to 24%.
And if you’re buying a second home, as of tomorrow, you too will pay more Stamp Duty – which will increase from 3% to 5%, adding pressure to buy-to-let sectors and holiday homes.
If you happen to have a healthy pension pot, then be warned, it will now become part of your estate and subject to inheritance tax.
And of course, there is the Winter Fuel Allowance which was scrapped for everyone but the poorest pensioners earlier this year. “Starmer, the pensioner harmer,” the protestors call him.
As I say – someone has to pay, and it seems anyone with a bit of extra and feeling comfortable may find themselves suddenly not comfortable.
Looking after working people
But, despite the ghoulish measures, I’ll give it to Reeves. She has tried to look after the most needy and most vulnerable.
National Minimum wage increases, maintaining the triple lock, Fuel Duty freezes and raising the Carer’s Allowance weekly earnings limit will help.
Plus, there will be no increase in taxes for working people meaning National Insurance, income tax and VAT will remain unchanged.
Plus, more money into the NHS with reduced wait times on the cards.
But we all know there’s no such thing as a free lunch and everyone will pay for the big fix Reeves has promised. But will it be enough is something we will have to wait and see.
