Labour set to deliver its first budget in 14 years

Rachel Reeves will become the first female Chancellor to deliver a budget later today as she delivers Labour's first budget for 14 years

The content of today's budget, which will happen in the Commons after Prime Ministers Questions has been the subject of speculation for weeks.

What are we expecting to be in the budget?

So what are we expecting to be in today's budget and how might it affect you?

Minimum wage

One thing we know definitely will happen is an increase to the minimum wage.

It was announced yesterday that the minimum wage will rise to £12.21 an hour next year after the Chancellor confirmed a 6.7% increase .

Rachel Reeves described the move as a “significant step” towards delivering on Labour’s manifesto promise to introduce a “genuine living wage for working people”.

The increase, recommended by the Low Pay Commission, will mean an extra £1,400 a year for a full-time worker earning the main minimum wage rate, known as the national living wage, from April 2025.

But it still falls short of the £12.60 per hour UK living wage calculated by the Living Wage Foundation.

The Chancellor also announced that the minimum wage for people aged 18-20 would rise to £10 an hour, an increase of £1.40.

NHS

We're expecting a multi-billion pound package of support to help revive the NHS with Health Secretary Wes Streeting saying yesterday the service is "not just on its knees, it's on its face".

The Chancellor's said her announcement will help unlock two million extra appointments a year.

Her speech is also expected to include £1.5bn for new surgical hubs as well as £70m for radio therapy machines.

She has warned it's unlikely to "undo" what she calls "14 years of damage", adding reform will take time, a sentiment Wes Streeting has echoed: "I think people are realistic. They know that we’re not going to turn the NHS around in just a few months or in a single budget.

“It’s going to take time and that’s why the Chancellor is prioritising the NHS in her Budget.

“We are linking that investment also to reform, because everything I said in opposition about waste and inefficiency in the NHS, the need to improve productivity, and we can’t keep on pouring more money in without reform – all of those things stand.”

The chancellor is expected to say:

“My belief in Britain burns brighter than ever. And the prize on offer to today is immense."

“More pounds in people’s pockets. An NHS that is there when you need it. An economy that is growing, creating wealth and opportunity for all. Because that is the only way to improve living standards."

Taxes

There has been lots of headlines around tax increases in the lead up to this budget with the Chancellor previously hinting at a possible National Insurance hike for employers, something which has left small business owners "seriously concerned"

Contributions for employers are expected to go up by at least one percent as part of Government plans to raise funds without hiking taxes on "working people" as per its manifesto promise, which committed to not increasing taxes on income tax, VAT or employee national insurance.

The budget will take place around 12.30pm after Sir Keir Starmer has faced Prime Minister's Questions.

Armed Forces

According to reports, the armed forces are in line for a £3 billion boost of funding.

The Telegraph has reported that the Chancellor is set to announce an increase in the defence budget for next year, part of which will be used to give soldiers a pay rise backdated to April.

The funding will also be used to buy weapons, with the aim of replenishing stockpiles depleted by donations to Ukraine.

A pathway to increasing defence spending to 2.5% of national economic output demanded by the Tories will apparently not be in the Budget.

Ms Reeves is also expected to comment that:

“This is not the first time that it has fallen to the Labour Party to rebuild Britain. In 1945, it was the Labour Party that rebuilt our country out of the rubble of the Second World War. In 1964, it was the Labour Party that rebuilt Britain with the white heat of technology. And in 1997, it was the Labour Party that rebuilt our schools and hospitals.

“Today, it falls to this Labour Party, this Labour government, to rebuild Britain once again.”

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