Chancellor defends £40 billion tax increase as necessary for economic stability

Chancellor Rachel Reeves announced a £40 billion tax increase, the largest since 1993, primarily through a £25 billion rise in employers' National Insurance contributions. She emphasized that all spending has been accounted for in the budget. Reeves stated this budget aims to "fix the foundations" of the economy and will not require similar tax increases in the future. She highlighted compensation for victims of scandals as part of the spending plan. The Office for Budget Responsibility reported that economic growth projections remain largely unchanged over the next five years. Reeves noted the importance of considering long-term economic decisions rather than short-term fixes.