Chancellor of the Exchequer Rachel Reeves makes her way to 10 Downing Street for her first day as a cabinet minister on July 6 in London. set out its first budget, a brutal one filled with 40 billion pounds in tax hikes targeted mainly at small and medium-sized private businesses, the prosperous middle class, and the very wealthy.
Luxury jet-setters will, as of April, 2025 have to pay a maximum of 673 pounds per person in tax every time they fly, depending on the destination. As of April, 2026, they’ll have to pay 1,000 pounds per head. She added that some initiatives might not be so welcome to small and medium-sized businesses in the U.K.’s 28.9 billion pound fashion and fashion retail sector.Rush argued that while “supporting our workforce is vital, squeezes on employers’ National Insurance” payments and hikes to the minimum wage will increase pressures on businesses already operating at slim margins.
“If it is to achieve its aim of making the U.K. economy the fastest growing of the G7, must recognize the contribution of the U.K. luxury sector, 81 billion pounds in GDP and 454,000 jobs. It must also act fast to support this high-growth sector by restoring tax-free shopping, smoothing trade with the EU, and protecting world-renowned British craftsmanship,” Brocklebank added.
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