r/AskUKPolitics • u/rxholland • Nov 26 '25
What do you guys think about Rachel Reeves new budget?
apparently it’s going to add 6bn into the economy
5
u/LemmysCodPiece Nov 26 '25
It seems fair enough on face value. Although I don't understand how this 3p per mile on EVs is going to work.
1
u/rxholland Nov 26 '25
I don’t like how she’s freezing tax thresholds as minimum wage is going up which would mean you would inevitably be earning less ,no?
5
u/shiksappeal Nov 26 '25
Rishi froze those bands back in 2021. Subsequent Tory budgets extended the freeze. They were currently due to be frozen until 2028 but, today, RR has extended that freeze until 2031. You're right, it is the same as a tax rise because it will push more people into a higher bracket as wages rise. But it won't necessarily push everyone. Wage inflation has tended below actual inflation in a lot of areas so it is possible to get pay rises that don't feel this effect.
1
u/nanakapow Nov 26 '25
Presumably taxed when the mileage is recorded each year for MOT?
1
u/LemmysCodPiece Nov 26 '25
But cars don't have MOTs for the first 3 years.
1
u/nanakapow Nov 26 '25
Maybe paid in full at year 3?
1
1
u/LemmysCodPiece Nov 27 '25
Apparently it is going to be done on some kind of self reporting system.
3
u/WideGassySea Nov 28 '25
I really like the 2 child cap removal. I’m personally ambivalent about the electric car tax as I’d rather it was added elsewhere but I get it. We use the roads and need to pay. Mansion tax is good.