As it happened: Chancellor reveals taxes will rise by £40bn as she vows to 'invest, invest, invest' in historic budget

Dalyth Jewel, Member of Senedd for South Wales East, reacts to Reeve's funding for devolved governments. 

The government will provide a £25m to the Welsh Government next year to maintain coal tips ensure committees are safe. This budget will provide £1.7 billion to the Welsh Government.

Reeves said in this 'moment of choice' she has chosen change.

Ellie Chow's, Green Party MP for North Herefordshire expressed concern about Reeve's failure to mention the climate in her budget speech.

Florian Wupperfeld, world-leading retail/social sustainability expert and CEO of LCD Ventures, told LBC that high streets need a 'holistic' approach from the government.

LCD Ventures is a UK-based data-driven urban innovation company offering placemaking services and socially sustainable solutions

"The Chancellor’s commitment to reforming business rates is a promising step, but it is unfortunately not a silver bullet to saving Britain’s struggling retailers and high streets. The much-needed business rates reform must now fit into a holistic approach that considers the diverse needs of Britain’s high streets, and prioritise local businesses and SMEs over large conglomerates.

The UK needs vibrant, thriving high streets which have a well-balanced social infrastructure, where smaller local businesses can compete with bigger brands. If we can create an environment to allow this to happen, the UK’s high streets will retain their unique culture and identity that make Britain so unique for locals and visitors alike."

Former Tory donor turned Labour supporter John Caudwell welcomed the Budget, saying it showed Labour had “got the memo” on running the country like a business.

The billionaire Phones 4 U founder said: “I am a firm believer that the country needs to be run like a business, and today’s Budget shows some signs that the Labour Government has got the memo.

“The Chancellor’s proposed change to fiscal rules regarding debt is evidence of this, and it could go some way towards stimulating the economic growth that has been promised, and which the UK so badly needs.

“The resulting release of tens of billions of pounds of investment would be a vital shot in the arm for Britain, and it is encouraging to see clean energy and the green economy high on the infrastructure shopping list.

“Proper management and oversight of how and where this money is invested will be absolutely vital, not just to allay any jitters in the financial markets but also to make sure we are driving real prosperity for Britain and the British people.”

He added he would have liked to have seen more detail on “a root and branch reform of the public sector”, including delivering “greater efficiencies” and shrinking the civil service.

 Here are the main points from Chancellor Rachel Reeves' Budget:

- The Chancellor has raised taxes by £40 billion. "Any chancellor standing here today would face this reality, and any responsible chancellor would take action," Ms Reeves said.

- Among the measures are a 1.2 percentage point increase for employers' national insurance contributions to 15 per cent in April 2025. The threshold for paying them will fall from £9,100 per year to £5,000.

- The headline rates of capital gains tax will increase, with the lower rate rising from 10 per cent to 18 per cent and the higher rate from 20 per cent to 24 per cent.

- The stamp duty land tax surcharge for second homes will increase by two percentage points to five per cent, and will come into effect from Thursday, the Chancellor added.

You can find the full roundup here.

Nick Sanderson, Audley Group CEO told LBC that housing reform is full of 'empty promises'.

Audley Group builds and manages luxury retirement villages.

He said: “The new government’s Budget crept by with only one mention of stamp duty - an increase for those buying second homes. 

No mention of Stamp Duty reform for downsizers which could do so much to get the market moving. 

A disappointing blow but it’s the silence on wider housing reform that is more haunting. 

Housebuilding targets and overhauls to the planning system are empty promises without the devil that is in the detail. 

Progressive and decisive action is needed if Labour are to get a handle on the issues that plague the housing system, and implement real change.”

Brian Byrnes, Head of Personal Finance at Moneybox, told LBC that "it's important that we aren’t disincentivising those early into their wealth-building journey."

He said: "The Chancellor has had a challenging job balancing the Budget, and the anticipated changes to Capital Gains Tax did come to fruition. 

The challenge with the CGT annual allowance is ensuring it remains fair. It has been reduced considerably in recent years, meaning more people than perhaps intended now fall into this bucket. 

Thankfully most savers and investors still have the option of saving in tax wrappers such as ISAs an incredible tool for wealth creation and the envy of investors around the world as well as Pensions, which become even more attractive after today’s announcement.

With the government’s goal to foster a savings and investment culture in the UK and boost wealth creation, it's important that we aren’t disincentivising those early into their wealth-building journey, and are instead encouraging savers to invest and grow their money."

Gary Smith, GMB General Secretary, said: “After 14 years of chaos and failure, it’s great to see a serious budget that focuses on the big issues facing our country.

“Much needed money for schools, including SEND, hospitals and a hefty wage rise for millions of low paid workers is something to be celebrated.”

Chancellor Rachel Reeves spoke for 77 minutes, meaning her Budget speech was longer than any of those delivered by her Conservative predecessors between 2010 and 2024.

The longest Budget speech delivered during that period was by Philip Hammond in October 2018, which lasted 71 minutes.

Ms Reeves’ speech was also nearly 20 minutes longer than the last time a Labour chancellor delivered a Budget, which was in March 2010 when Alistair Darling spoke for 58 minutes.