Autumn Budget 2024: How will Rachel Reeves’s tax rises impact the UK economy?

The dust is starting to settle on Chancellor Rachel Reeves’s first Budget, but economists will be debating its likely impact for months to come – if not years (lucky us).

What’s not up for debate is that this was an important Budget.

“This budget delivers one of the largest increases in spending, tax and borrowing of any fiscal event in history,” Richard Hughes, chair of the OBR said.

As a result of the government’s policies, the size of the state will rise to 44 per cent of GDP by the end of the decade, five percentage points larger than it was pre-pandemic. The tax take will rise to over 38 per cent of GDP, its highest-ever level.

Get more of the story 👇

Get more of City AM 👇

Produced by: Chris Dorrell, Joseph Curay Teneda, Larissa Howie

[AshleyKeith-vwws]

Imagine how out of touch this government is—offering a £10 salary increase while raising taxes by £15. How do they expect people to survive? The economy is truly in a dire state, and it feels like it’s gone for good.

[TenThumbsProductions]

And the most expensive public transport, most expensive housing... the UK hates its working class.

[bmclaughlin]

I lived in Finland for 10 years and paid a ‘progressive tax’ rate. The difference is, everything worked and everyone knew where the money was going due to their transparency laws. I am now paying the same ‘progressive tax’ rate in the UK but nothing works and I have no idea where the money is going! Just lots of corruption and bad management.

[africanking]

3 billion for ukraine and 10 billion for Israel

[YuZi]

“The left wing and right wing are two wings of the same bird”

[katemucklow]

The irony of people blaming either labour or Tory is insane. THEY ARE BOTH THE SAME

[mickscott]

Labour had the cheek to criticize the Tories over taxes now labour has taxed far far higher after completely lying to the public.

[clashoflions]

😂 increase salaries with 10£ and increase taxes with £15

[michaelbenton]

Just the beginning. Leave this country if you can.

[Jasonlimitless]

The UK government should be here for the people of the UK. Tax is the money of the people. Yet the government never spends it on what the people want. It’s criminal. Every country has a government and every government should take care of its people first. It’s really getting bad recently.

[grizbaseball]

Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments.

[weekendwarriorprospecting]

This is how you turn respectable people into criminals. Pick your fights very carefully!!!

[xamyx]

Are we allowed to ask for a ceasefire? The spending for that is crazy?

[boopadin]

Growth down, interest rates up, borrowing up, national debt up, NI up, duty up, capital gains tax up, school fees up, stamp duty up, unemployment up, hiring down.
Support for the party down, thank goodness.

[JohnSmith-qmxx]

Thank God I am 78 and will not be here very much longer. The thought of living much longer under these so called politicians makes me physically sick.
They are despicable bent.

[SusanBell-dlgr]

We all know how cost effective public spending is when most of it will go to foreign companies, time to stop Net Zero.

[bustamango]

We are all on this planet for around 85-90 years and then we die …for some reason we’ve allowed a small group of others who are on this planet the same as us to take most of our wealth that we have earned since being here, we just hand it over to them…😂 figure that out.

[itsmsbryanu]

Why can't they take it out of their own pay!

[alinemichele]

Rich people don't pay most of the taxes, in fact they hardly pay anything, it's the middle class who fund them

[g.p]

Imagine that …. Starmer, Reeves and Rayner all know how to spend my money better than I do!!😂😂😂