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Latest news on 2024 UK Budget, providing comprehensive coverage of tax changes, economic forecasts, public spending plans, and key policies from Chancellor Rachel Reeves' first Labour budget.

Chancellor Rachel Reeves is set to deliver Labour's first Budget in 15 years on 30 October 2024, amid significant economic challenges and speculation about potential tax rises. The fiscal event comes as the UK grapples with a reported £22 billion 'black hole' in public spending, announced by Reeves in July.

While Labour has pledged not to raise income tax, national insurance, or VAT, experts anticipate potential increases in other areas to address the fiscal gap. The Institute for Fiscal Studies (IFS) suggests that up to £25 billion may need to be raised through tax increases to maintain public spending in line with national income. Key areas under consideration include reforms to capital gains tax, inheritance tax, and pension tax relief.

One of the most talked-about proposals is a potential increase in capital gains tax (CGT) rates, with Treasury modelling reportedly considering a range between 33% and 39%. This would significantly narrow the gap between CGT and income tax rates, potentially raising substantial revenue but also risking behavioural changes among taxpayers. Other measures under consideration include changes to pension tax relief, with a possible move to a flat 30% rate, and closing loopholes in inheritance tax.

Beyond tax changes, the Budget is expected to outline Labour's approach to welfare spending, with a focus on reducing long-term sickness and supporting people back to work. A crackdown on benefit fraud is already confirmed, aiming to save £1.6 billion over five years. The chancellor may also address business rates reform, fuel duty, and closing tax loopholes for private equity profits.

As the UK navigates economic uncertainties, including recent stagnation after a period of growth, the 2024 Budget will be crucial in setting the tone for Labour's economic policy. Reeves faces the challenge of balancing fiscal responsibility with the need to stimulate growth and address pressing issues in public services. The outcomes of this Budget will likely have far-reaching implications for businesses, individuals, and the broader UK economy in the coming years.

The Â鶹´«Ã½ feed on the 2024 UK Budget will provide real-time updates from reliable sources as details emerge, offering comprehensive coverage of the chancellor's announcements, expert analysis, and reactions from various sectors of the economy. Stay informed about this pivotal event shaping the UK's financial future.