UK chancellor Rachel Reeves unveils 2024 budget focused on economic growth and fiscal responsibility
Summary: Rachel Reeves, the UK’s first female chancellor, presented the 2024 budget, emphasizing a mandate for change and a commitment to economic growth through investment. She announced plans to raise taxes by £40 billion to address a £22 billion fiscal gap inherited from the previous Conservative government.
The Office for Budget Responsibility revealed that the previous government did not fully disclose spending details, which would have altered financial forecasts. Reeves plans to implement ten recommendations from the OBR's review and announced compensation for victims of the infected blood scandal and the Post Office IT scandal.
Inflation is projected to average 2.5% in 2024, with GDP growth forecasted at 1.1%. The government aims to balance the budget within three years, with plans to reduce public sector net debt from £127 billion in 2024-25 to £70.6 billion by 2029-30.
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