The Chancellor, The Rt Hon Rachael Reeves has delivered her second Budget with a package of spending pledges and big tax rises. In fact, it amounted to a tax increase of around £26bn overall, the biggest share of that coming from the freezing of personal tax thresholds.
Reeves’ budget was presented against a fairly gloomy backdrop. According to the Office for Budget Responsibility, economic growth is forecast to be modest: growth of 1.4–1.5 % in 2025, but slower productivity and weaker growth through 2026–2029. Real disposable household incomes are expected to remain under pressure – and the gains per person will be small through to 2031, barely above pre-pandemic levels in real terms.
Some of yesterday’s announcements do not apply in Scotland, while others are UK-wide. Here’s a quick breakdown of the key measures relating to Scotland.