Source link : https://london-news.net/headline-london-braces-for-economic-shift-as-new-budget-sparks-pay-raises-and-controversial-taxes/
Chancellor Rachel Reeves has announced in the Budget a tax hike that will enhance the government’s fiscal buffer to £21.7 billion and support expenditures aimed at alleviating the cost of living for “working individuals.”
This revelation, made in the House of Commons following an inadvertent early release by the Office for Budget Responsibility, detailed various proposals, including an increase in the minimum wage and the implementation of a mileage tax for electric vehicles (EVs).
BBC London provides an analysis of the implications of Reeves’s proposals for the capital.
From April, tens of thousands of workers in London are set to benefit from a minimum wage increase previously revealed by the government ahead of the Budget.
The hourly wage for workers aged over 21 will rise by 50 pence to £12.71, while those aged 18 to 20 will see an 85 pence increase to £10.85. Workers under 18 and apprentices will receive an additional 45 pence, resulting in an hourly wage of £8.
According to the government’s 2024 statistics, approximately 153,200 individuals aged 16 and over in London earn the minimum wage, with the highest concentration—around 10,000—employed in Westminster.
Reeves asserted that the cost of living remains the foremost concern for working individuals; however, businesses have cautioned that further hikes in minimum wage could lead to hiring freezes.
Michael Kill, Chief Executive of the Night Time Industries Association, described the Budget as a…
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Publish date : 2025-11-26 16:56:00
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