Reeves launches £26 billion tax raid as welfare spending rises

Chancellor of the Exchequer Rachel Reeves poses outside 11 Downing Street, London, with her ministerial red box, before delivering her Budget in the House of Commons. Picture date: Wednesday November 26, 2025. - (PA Wire)

Rachel Reeves hiked taxes by £26 billion as she faced forecasts of weaker economic growth, faster inflation and higher unemployment.

The Chancellor’s measures, including a freeze on income tax thresholds which will leave 1.7 million people paying more, take the tax burden to an all-time high according to the Office for Budget Responsibility (OBR).