Gabrielle Wilde
Guest Reporter
Chancellor Rachel Reeves delivered Labour's first Autumn Budget in 14 years, unveiling significant tax hikes and spending plans.
The Budget aims to address a claimed £22billion deficit in public finances, improve public services and stimulate economic growth.
Overall, the Budget is set to raise taxes by a record £40billion, which Reeves attributed to the economic legacy inherited from the Conservative Government.
Speaking to Nigel Farage on GB News, economist Liam Halligan expressed concerns about the national debt, which he said is now close to 100 per cent of GDP.
Halligan said: "The debt that we have to pay back as a government, albeit through time, is equivalent to the size of the entire economy in a single year.
"In context, back in 2009, before the financial crisis, the national debt was about 30 per cent of GDP, and before Covid, it was about 80 per cent of GDP. It's now 100 per cent of GDP.
LATEST DEVELOPMENTS:
"There's lots of talk about the sort of big picture of this budget is that Rachel Reeves just increased spending by about £70billion a year.
"She increased taxation by about £40billion odd a year, most of which she tried to blame on a Tory blackhole.
"So that means borrowing more of £30billion a year. These are very, very big numbers. So the size of that national debt is going to get.
"But as you borrow more each year, when you're borrowing an extra £30billion a year over five years, it's an extra £142billion a year over the next five years, the market has to absorb that."
He cautioned: "That won't do anything to help growth. On the contrary, that will hinder growth."
Reeves announced a 1.2 per cent increase in employers' national insurance contributions, raising the rate to 15 per cent from next April.
This move is expected to generate £25billion in tax receipts over the forecast period.
The Chancellor also revealed changes to capital gains tax and inheritance tax, including bringing inherited pensions into the inheritance tax system from 2027.
The Budget introduced significant changes to capital gains tax (CGT) and inheritance tax (IHT). Reeves announced that the lower rate of CGT would rise from 10 to 18 per cent, while the higher rate would increase from 20 to 24 per cent.
However, rates on residential property will remain unchanged.
Inheritance tax thresholds will stay frozen until 2030. A key change is the inclusion of inherited pensions in the IHT system from 2027.
Find Out More...
The Budget aims to address a claimed £22billion deficit in public finances, improve public services and stimulate economic growth.
Overall, the Budget is set to raise taxes by a record £40billion, which Reeves attributed to the economic legacy inherited from the Conservative Government.
Speaking to Nigel Farage on GB News, economist Liam Halligan expressed concerns about the national debt, which he said is now close to 100 per cent of GDP.
Halligan said: "The debt that we have to pay back as a government, albeit through time, is equivalent to the size of the entire economy in a single year.
"In context, back in 2009, before the financial crisis, the national debt was about 30 per cent of GDP, and before Covid, it was about 80 per cent of GDP. It's now 100 per cent of GDP.
LATEST DEVELOPMENTS:
- Help to Save EXTENDED for two years in boon for Universal Credit claimants
- Steve Bannon fires stern warning to Britain over ‘massive financial problems’ - ‘Parts outside London are third world!’
- Kwasi Kwarteng claims that Labour will be 'booted out' if they don't deliver economic growth
"There's lots of talk about the sort of big picture of this budget is that Rachel Reeves just increased spending by about £70billion a year.
"She increased taxation by about £40billion odd a year, most of which she tried to blame on a Tory blackhole.
"So that means borrowing more of £30billion a year. These are very, very big numbers. So the size of that national debt is going to get.
"But as you borrow more each year, when you're borrowing an extra £30billion a year over five years, it's an extra £142billion a year over the next five years, the market has to absorb that."
He cautioned: "That won't do anything to help growth. On the contrary, that will hinder growth."
Reeves announced a 1.2 per cent increase in employers' national insurance contributions, raising the rate to 15 per cent from next April.
This move is expected to generate £25billion in tax receipts over the forecast period.
The Chancellor also revealed changes to capital gains tax and inheritance tax, including bringing inherited pensions into the inheritance tax system from 2027.
The Budget introduced significant changes to capital gains tax (CGT) and inheritance tax (IHT). Reeves announced that the lower rate of CGT would rise from 10 to 18 per cent, while the higher rate would increase from 20 to 24 per cent.
However, rates on residential property will remain unchanged.
Inheritance tax thresholds will stay frozen until 2030. A key change is the inclusion of inherited pensions in the IHT system from 2027.
Find Out More...