Britain targets the wealthy as it hikes taxes by $52 billion

The United Kingdom is raising taxes by an eye-watering £40 billion ($52 billion), as the government seeks to plug a hole in its finances by targeting higher earners, wealthy foreigners and businesses.

The United Kingdom is raising taxes by an eye-watering £40 billion ($52 billion), as the government seeks to plug a hole in its finances by targeting higher earners, wealthy foreigners and businesses. UK finance minister Rachel Reeves, the first woman to ever hold the position, unveiled the tax hikes Wednesday in the ruling Labour Party’s first budget since it won a landslide victory in a general election in July. The measures — which will increase annual government revenue by £41.5 billion ($54 billion) by the end of the decade — push the tax take to a record 38% of gross domestic product, according to the Office for Budget Responsibility, the UK government’s fiscal watchdog. “Today, I am restoring stability to our public finances and rebuilding our public services,” Reeves said, arguing that the now-opposition Conservative Party had “failed” Britain, including by inadequately budgeting for required government spending. “The British people have inherited their failure. A black hole in the public finances. Public services on their knees. A decade of low (economic) growth. And the worst parliament for living standards in modern history,” she added. Reeves described her budget as charting a “responsible” course while making tough but necessary trade-offs.