improve living standards only way to improve living standards and the only way to drive economic growth is to invest, invest, invest. energy taxes, up! business growth is to invest, invest, invest. energy tax95, up! business rates, energy taxes, up! business rates, up! energy taxes, up! business rates, up! first—time buyer stamp duty, up! pensions_ up! first—time buyer stamp duty, up! pensions tax. — up! first—time buyer stamp duty, up! pensions tax, up! they have fiddled the figures! pensions tax, up! they have fiddled the fi . ures! pensions tax, up! they have fiddled the fiaures! ., ., ., ._ the figures! one other headline away from the budget... _ spain declares three days of mourning after at least 70 people are killed in flash floods following a year's worth of rain injust eight hours. welcome back to westminster, where we have seen rachel reeves deliver her first budget as chancellor, labour's first budget in m years and one that will who have a huge impact on tax and spending and therefore the lives of all of us across the country. let me take you through the main measures over the next minutes because the headline figure, well, that is taxes rising

by £40 billion. that was the announcement, the headline, record announcement, the headline, record announcement by rachel reeves, she said any chancellor would have done the same if they wanted to be responsible and rebuild public services. a big part of that will be an increase in national insurance contributions for employers with a rate rise from 13.8% to 15%. employers will also start paying at a lower level of earnings. the hike is expected to raise £25 billion from businesses. personal tax remains the same, that is the rate of income tax and national insurance played by employees, plus vat. income tax band thresholds will be unfrozen, but not until 2028. a boost to public spending, £22.6 billion for day—to—day spending on the nhs in england, plus extra money for schools, some 6.7 billion for the department for education. the minimum wage will also go up for

over 20 ones, rising from £11.44 per hour to £12.21 per hour. there was an announcement for home building with the affordable homes budget being boosted by £500 million. 0n transport, confirmation of a rise in the cap from single bus fares from £2 to £3 and that comes in from january. in terms of personal taxes, bad news if you are a smoker, a rise in tobacco duty and a rise in tax on vaping liquid from next year. better news if you like a pint, duty on beer is down by 1p. lots of measures to chew over in the next few hours, but let's start in this hour in this report by nick watson. this budget has already booked its place in history, the first to be delivered by a female chancellor of the exchequer, but likely to be remembered for other reasons as well. labour promised change during the last election. the contents of

rachel reeves's red box has now defined what that looks like and has now provided a clear sense of the government's direction. i call]! now provided a clear sense of the government's direction.— government's direction. i call the chancellor _ government's direction. i call the chancellor of _ government's direction. i call the chancellor of the _ government's direction. i call the chancellor of the exchequer. - chancellor of the exchequer. cheering she began her speech by trying to counter claims that the government was being too gloomy. my counter claims that the government was being too gloomy.— was being too gloomy. my belief in britain burns _ was being too gloomy. my belief in britain burns brighter— was being too gloomy. my belief in britain burns brighter than - was being too gloomy. my belief in britain burns brighter than ever. i britain burns brighter than ever. and the prize on offer is immense. as my right honourable friend the prime minister said on monday, change must be felt. more pounds and people's pockets. an nhs that is there when you need it. an economy that is growing, creating wealth and opportunity for all. because that is the only way to improve living standards. cheering and the only way to drive economic growth is to invest, invest, invest. cheering but promises to invest means

changing the rules on debt and borrowing, which critics say is risky. but the chancellor argues this will pay for projects which will boost economic growth and to pay for increases in day—to—day spending she said taxes would have to go up, by a lot. she sought to blame the previous government. their failure to assess _ blame the previous government. their failure to assess the _ blame the previous government. tue: " failure to assess the scale blame the previous government. tte: " failure to assess the scale of blame the previous government. "tte: " failure to assess the scale of the challenges facing our public services means that this budget raises taxes by £40 billion. any chancellor standing here today would have to face this reality. the laru est have to face this reality. the largest chunk _ have to face this reality. the largest chunk of _ have to face this reality. the largest chunk of this - have to face this reality. the largest chunk of this comes from increasing the amount employers pay increasing the amount employers pay in national insurance. this increasing the amount employers pay in national insurance.— in national insurance. this will raise £25 billion _ in national insurance. this will raise £25 billion per— in national insurance. this will raise £25 billion per year- in national insurance. this will raise £25 billion per year by i in national insurance. this will| raise £25 billion per year by the end of the forecast period. i know that this is a difficult choice. i do not take this decision lightly. we are asking businesses to contribute more. the we are asking businesses to contribute more. ,., �* , contribute more. the government's employment _ contribute more. the government's employment says — contribute more. the government's employment says this _ contribute more. the government's employment says this breaks - contribute more. the government's employment says this breaks the i employment says this breaks the

manifesto promise to not raise national insurance. labour insists this applies only to employees. but the chancellor decided against extending a freeze on tax raises that could have led to... for the first time- _ that could have led to... for the first time. i'm _ that could have led to... for the first time. i'm keeping - that could have led to... for the first time. i'm keeping every i that could have led to... for the i first time. i'm keeping every single promise i made in our manifesto, so there will be no extension on the three is an income tax and national insurance threshold is beyond the decisions by the previous government.— decisions by the previous government. , , , . ., , government. the biggest beneficiary ofthe government. the biggest beneficiary of the tax rises _ government. the biggest beneficiary of the tax rises will _ government. the biggest beneficiary of the tax rises will be _ government. the biggest beneficiary of the tax rises will be the _ government. the biggest beneficiary of the tax rises will be the nhs i government. the biggest beneficiary of the tax rises will be the nhs in i of the tax rises will be the nhs in england, winning £32 billion boost to its day—to—day spending. this england, winning £32 billion boost to its day-to-day spending. this is the largest — to its day-to-day spending. this is the largest real _ to its day-to-day spending. this is the largest real terms _ to its day-to-day spending. this is the largest real terms growth i to its day-to-day spending. this is the largest real terms growth in i the largest real terms growth in day—to—day nhs spending outside of covid since 2010. but day-to-day nhs spending outside of covid since 2010.— covid since 2010. but the outgoing leader of the _ covid since 2010. but the outgoing leader of the opposition _ covid since 2010. but the outgoing leader of the opposition accused . leader of the opposition accused labour of not being straight with voters. fin labour of not being straight with voters. ., , labour of not being straight with voters. , ., labour of not being straight with voters. ._ ., ., ., ~' voters. on the day that he took office, voters. on the day that he took office. the _ voters. on the day that he took office, the prime _ voters. on the day that he took office, the prime minister- voters. on the day that he took office, the prime minister said | voters. on the day that he took i office, the prime minister said that he wanted — office, the prime minister said that he wanted to restore trust to british— he wanted to restore trust to british politics with action, not words — british politics with action, not words. well, today his actions speak

for themselves, with a budget that contains— for themselves, with a budget that contains broken promise after a broken — contains broken promise after a broken promise. cheering and reveals the simple truth that the prime — and reveals the simple truth that the prime minister and the chancellor have not been straight with the — chancellor have not been straight with the british people. cheering time, time and again, time and again we conservatives warned labour would tax, we conservatives warned labour would tax. borrow _ we conservatives warned labour would tax, borrow and spend far beyond what _ tax, borrow and spend far beyond what they— tax, borrow and spend far beyond what they were telling the country. and time _ what they were telling the country. and time and again, they denied they had such_ and time and again, they denied they had such plans. but today the truth has come _ had such plans. but today the truth has come out. proof that they planned — has come out. proof that they planned to do this all along. the lib dems also _ planned to do this all along. tt;e: lib dems also disagreed with some planned to do this all along. tt9 lib dems also disagreed with some of the tax rises, but in other areas they wanted to see more spending. the conservatives left behind an enormous mess in our nhs, but i am afraid it won't be fixed unless the government fixes social care as well. cheering

the cost of living crisis won't be solved by hitting families, pensioners, family farms and struggling small businesses. and our economy won't ghost ghilli grow strongly again unless we repair our broken relationship with europe. the bi aer broken relationship with europe. the bigger political picture is even easier to see now than it was in the last election, its clear blue water between the government and opposition over taxation, spending and borrowing. iain watson, bbc news, westminster. let's get more political reaction. with me is the conservative mp gareth davies, shadow treasury minister. welcome here to the green.— here to the green. your reaction to what ou here to the green. your reaction to what you heard _ today? a budget of broken promises. they said they wouldn't raise taxes, they said they wouldn't raise national insurance. taxes going up by £40 billion today, this is a historic budget in many ways, the highest tax—raising budget in history. it is going to hurt employers, it will hurt people who work for small businesses. inflation

and debt is going to grow up up, inflation is going to be slower than predicted in march, so not a great day. predicted in march, so not a great da . .,. predicted in march, so not a great da . :, : , predicted in march, so not a great da . , ., , predicted in march, so not a great da. , predicted in march, so not a great day. rachel reeves was saying she was making — day. rachel reeves was saying she was making responsible _ day. rachel reeves was saying she was making responsible choices. . day. rachel reeves was saying she i was making responsible choices. when your party was in power, they sidelined the 0br and crashed the economy. sidelined the obr and crashed the econom . :, :, , sidelined the obr and crashed the econom . . ., , :, . ., , economy. that was one incident, as ou economy. that was one incident, as you know. — economy. that was one incident, as you know. in _ economy. that was one incident, as you know, in 2022. _ economy. that was one incident, as you know, in 2022. jeremy - economy. that was one incident, as you know, in 2022. jeremy hunt i economy. that was one incident, as| you know, in 2022. jeremy hunt and rishi sunak then came into power, stabilised, we acknowledged the mistakes of that one specific prime minister that came in for a very, very brief period of time. but to say that they inherited a very difficult situation, they are inherited the first digit growth in the g7, half the deficit we inherited in 2010 it isjust the g7, half the deficit we inherited in 2010 it is just not... and a black hole? which has not been corroborated by the 0br, despite what she said in the house of commons today. we are not accepting that assertion, the 0br have not backed that assertion. this is something they always planned to do, they always planned to raise taxes, they always planned to raise taxes, they are getting money to their union paymasters without any conditions whatsoever, their pet

project, gb energy, 5 billion national wealth fund. if there was a black hole, why are they spending like it is going out of fashion? they are investing and i will come back to investment in a second or two, but you are clearly against the national insurance rise for employers, you are against the capital gains tax, the inheritance tax, i could keep going. if you are against that, how would you have raised money because it is very hard for me to say what we would have done, but if you look at our record, the last three fiscal events and budgets we— the last three fiscal events and budets we :, : :, :, :, budgets we had, we cut national insurance. _ budgets we had, we cut national insurance, we _ budgets we had, we cut national insurance, we cut _ budgets we had, we cut national insurance, we cut national i budgets we had, we cut national- insurance, we cut national insurance for working people go up —— to get up, go for working