UK Targets Wealthy With $52 Billion Tax Hike

The United Kingdom is increasing taxes by a significant £40 billion ($52 billion) as the government seeks to address a financial shortfall by targeting higher earners, wealthy foreigners, and businesses, Hanna Ziady reported for CNN.

The measures — projected to raise government revenue by £41.5 billion ($54 billion) annually by the end of the decade — push the tax burden to a record 38% of gross domestic product (GDP).

UK finance minister Rachel Reeves, the first woman to hold the position, announced the tax hikes in the ruling Labor Party’s first budget since its landslide election victory in July.

The measures — projected to raise government revenue by £41.5 billion ($54 billion) annually by the end of the decade — push the tax burden to a record 38% of gross domestic product (GDP), according to the Office for Budget Responsibility, the UK’s fiscal watchdog.

“Today, I am restoring stability to our public finances and rebuilding our public services,” Reeves said, asserting that the now-opposition Conservative Party had “failed” Britain by not adequately planning for necessary government spending.

“The British people have inherited their failure: a black hole in public finances, public services on their knees, a decade of low growth, and the worst record for living standards in modern history,” she added.