Budget 2025: Reeves to announce £26bn of tax rises after budget leak

Rachel Reeves will announce £26bn worth of tax rises in her budget including extending the freeze on personal income thresholds.

The measures have been revealed in a forecast by the Office for Budget Responsibility which was released in error ahead of the chancellor's statement.

The freeze, that was due to end in 2028, will be extended for another three years, despite the chancellor previously saying she would not do this as it would "hurt working people".

It will drag millions of people into a higher tax band, raising an estimated £8bn for the exchequer in 2029-2030, the OBR report said.

The chancellor will announce a series of smaller tax rises too, including a "mansion tax" on properties worth over £2m, while salary-sacrificed pension contributions above an annual £2,000 threshold will no longer be exempt from national insurance.

Meanwhile the two-child benefit cap will be scrapped - a move likely to please Labour MPs and one that will contribute to the bulk of an £11bn increase in public spending.

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