Displaying items by tag: tax rises

Rachel Reeves has delivered her second Budget against a backdrop of weak economic growth, high inflation and tightening household finances. Seeking to raise revenue without triggering an inflation spike, she avoided the previously signalled rise in income tax rates and instead relied on a wide mix of indirect tax changes and frozen thresholds. Measures include new or higher taxes on wealth, property, tourism, gambling and high-sugar drinks, along with a future per-mile charge for electric vehicles. A major welfare change will see the two-child benefit cap scrapped in April 2026, while benefits rise in line with inflation. Business incentives are also adjusted, including changes to capital allowances and dividend taxation. She has also raised the basic living wage significantly: see https://www.bbc.co.uk/news/articles/cn41v89xq4go Critics warn the strategy adds complexity and prolongs record-high tax levels, raising concerns that further tax rises may still be needed. Reeves positioned the Budget as a necessary step to stabilise public finances while supporting workers and the most vulnerable during economic uncertainty.

Following violent protests in which 22 people were killed, president William Ruto has announced he will not sign a finance bill proposing new taxes. The bill, which aimed to raise funds to pay off debt, has faced widespread opposition from Kenyans struggling economically. On 25 June thousands of protesters stormed parliament, an action which Ruto called ‘treasonous’. In the chaos which ensued, the police and military were accused of brutality, with human rights groups reporting abductions and hundreds of injuries. Acknowledging the ‘widespread dissatisfaction’, Ruto admitted the need for a national conversation on managing the country's affairs together. The high court has suspended the military deployment and ordered the release of all protestors. Many young voters who supported Ruto in 2022 now oppose his reforms, feeling betrayed by the economic hardships. He has been criticised for not adopting a more conciliatory approach, and widespread protests continue: see