October 30th 2024.
The United Kingdom's newly elected Prime Minister, Keir Starmer, recently held a meeting with the Chancellor of the Exchequer, Rachel Reeves. This gathering took place just a few days before the highly anticipated announcement of the Labour government's first budget. As the country eagerly awaits the details, all eyes are on Chancellor Reeves, who will be delivering the budget this afternoon.
It is expected that the Chancellor's budget will outline the Labour Party's agenda for their time in office. Reeves has promised to prioritize putting more money into the pockets of citizens, improving the National Health Service, and growing the economy. However, she has also acknowledged that tough decisions will need to be made in order to achieve these goals.
One of the major changes included in the budget is a 6.7% increase in the minimum wage, bringing it up to £12.21 per hour. This means that full-time workers earning the national living wage will see an extra £1,400 in their yearly income starting in April. However, this wage increase will be balanced out by a rise in national insurance contributions for employers. This has been met with criticism from businesses, who argue that it will make it more difficult for them to hire and create jobs, ultimately negating the positive impact of the pay rise for workers.
In addition to the minimum wage increase, the budget is also expected to include cuts to the winter fuel allowance for millions of pensioners. This decision has been met with widespread disapproval, as it is part of the Labour government's pledge to address the significant budget deficit left by the previous Conservative administration, which amounted to a staggering £22 billion.
The Chancellor has also announced plans to raise the prices of vapes and tobacco products in an effort to discourage young people from smoking. On a more positive note, there will be a significant increase in funding for the armed forces, with an extra £3 billion allocated annually. The National Health Service will also receive a much-needed boost in funding, although the Chancellor has warned that it may not be enough to fully reverse the damage caused by the Conservatives during their 14 years in power.
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