Reeves braced for major Budget clash with businesses over minimum wage and tax rises
Business backlash predicted over minimum wage and tax rises in budget
- Rachel Reeves, the Chancellor, is set to unveil a Budget aimed at tackling the cost of living crisis and balancing public finances by targeting wealthy individuals and businesses.
- Key measures include an inflation-busting increase to the minimum wage, an uplift in the state pension, and a freeze on rail fares and prescriptions.
- The Budget is also expected to commit £3.5bn to abolish the two-child child benefit cap and introduce new taxes such as an extended sugar tax, a tourism tax, and a mansion tax.
- Businesses have strongly criticised the proposed measures, particularly the minimum wage hike, warning it will lead to job losses and hinder economic growth.
- While trade unions have welcomed the minimum wage increase, the Conservatives have accused Ms Reeves of imposing higher taxes on working families.