Govt unveils tax-raising budget

Britain’s centre-left Labour government was set to unveil a tax-raising budget yesterday to curb debt and fund public services, while aiming to reassure financial markets and voters alike.

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Prime Minister Keir Starmer has vowed to reduce National Health Service waiting times and ease a prolonged cost-of-living crisis, hoping to strengthen Labour's appeal as hard-right Reform UK gains momentum in the polls.

But finance minister Rachel Reeves must balance pledges to support households with convincing investors the government has its finances under control.

“Twill not return Britain back to austerity, nor will I lose control of public spending with reckless borrowing,” Ms Reeves said in a statement on the eve of the budget.

Ms Reeves, whose official title is Chancellor of the Exchequer, has announced sweeteners such as above-inflation rises to the minimum wage and pensions, along with freezes on rail fares and prescription charges ahead of the budget.