Economist spells out how Labour's Budget helped the super rich | Grace Blakeley interview

Today we are joined by Grace Blakeley, author of Vulture Capitalism to dissect who benefits from the Budget, why Big Business receives taxpayer money, and why growth can't save us.

Rachel Reeves’ Budget, delivered yesterday, set out roughly £26 billion in tax rises aimed at stabilising the public finances while funding higher public-service spending. The headline measures included abolishing the two-child benefit cap and freezing income-tax and National Insurance thresholds until 2030–31, a move expected to draw millions more workers into higher tax bands over time.

Reeves also confirmed a future cap on pension salary-sacrifice contributions — from 2029, only the first £2,000 a year will receive full relief — alongside increases in taxes on dividends, savings income, and a new surcharge on properties valued above £2 million. Additional revenue will come from higher levies related to electric vehicles and online gambling. On the spending side, the Budget includes pledges to freeze rail fares and fuel duty while offering support with household energy bills.

Reeves framed the package as a “fair and responsible” plan to rebuild economic stability and create fiscal space for investment in services such as the NHS. Critics, however, warn that the freeze to tax thresholds functions as a substantial “stealth tax” on middle-income earners, that increased taxes on pensions and savings could discourage long-term saving, and that weaker growth forecasts may limit the Budget’s ambitions.

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