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Households will be left £400 WORSE OFF this year with Reeves’ tax hikes partly to blame, economists warn

HOUSEHOLDS will be left £400 worse off this year as Rachel Reeves’ tax blitz piles pressure on family finances, economists have warned.

The Resolution Foundation think tank today said a triple hit of tax hikes, soaring utility bills and benefit squeezes will create a “historically bleak” outlook for living standards.

Headshot of Rachel Reeves.
PA
Households will be left £400 worse off this year as Rachel Reeves’ tax blitz piles pressure on family finances, economists have warned[/caption]

A prolonged freeze on personal tax thresholds will push more earners into higher tax bands, while the employer National Insurance hike is expected to stifle wage growth, hitting take-home pay.

The Resolution Foundation found that these tax policies alone will drain £170 a year from the average household’s income.

Meanwhile, rising council tax and utility bills will see the typical household shell out an extra £80 annually in England.

Above-inflation water bill hikes will be even harsher, with average costs surging by £120 a year.

Adam Corlett, Principal Economist at the Resolution Foundation, said: “The new tax year has arrived, bringing higher taxes, even steeper bill increases, and benefits that fail to keep pace with the rising cost of living.

“The typical household is now projected to be £400 worse off this financial year due to a toxic combination of weakening wage growth, escalating housing costs, tax and bill hikes, and benefits failing to outstrip inflation.”

The Chancellor has refused to rule out future tax rises but vowed not to repeat the bombshell raid of her first Budget.

Reeves said last week: “If we go further and faster on delivering economic growth with our planning reforms, with our pensions reforms, with our regulatory reforms, we can both grow the economy and have more money for our public services. And that is what I’m focused on.”

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Half a million fewer NHS operations and appointments cancelled since Labour came to power, Health Sec says

HALF a million fewer NHS operations and appointments have been cancelled since the General Election, compared with 12 months earlier, the Health Secretary declared yesterday.

Wes Streeting credited the end of doctors strikes with allowing the NHS to get back on track.

Wes Streeting, Labour's Health Secretary, speaking at an event.
Getty
Half a million fewer NHS operations and appointments have been cancelled since the General Election, pictured Health Secretary Wes Streeting[/caption]

Department for Health figures reveal 507,000 slots were scrapped and rescheduled between July 2023 and February 2024 due to industrial action.

The walkouts worsened backlogs, adding 140,000 patients to waiting lists.

Mr Streeting said: “Cancelled operations weren’t just an inconvenience.

“They left hundreds of thousands in pain, distress, and frustration.

“That’s why I sat down with junior doctors and brought these damaging strikes to an end.”

Since July, more than two million additional appointments have been carried out, cutting waiting lists by 193,000.

Launching Labour’s local election campaign in the East Midlands today, Sir Keir Starmer will pledge to ensure 92 per cent of patients are seen within 18 weeks by 2029.

Labour Chair Ellie Reeves said: “Whether it’s putting more money in people’s pockets through our minimum wage boost, fixing our NHS, or investing in roads to tackle the Tory pothole plague, Labour is delivering the change working people voted for.”

WES STREETING

BEFORE the election, I told Sun readers what they would get with Labour.

I promised to get urgent talks up and running with resident doctors.

Less than a month later, we had a deal to end NHS strikes.

A promise made and a promise kept.

There have been 500,000 fewer cancelled appointments since July.

That is the difference Labour has made.

It wasn’t easy.

The Chancellor has had to take tough decisions to invest in rebuilding the NHS.

The Tories, Lib Dems and Reform would cut that investment, Labour is cutting waiting lists.

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