RACHEL Reeves used Labour’s first Budget in 15 years to push levies to a record high — as she unveiled a list of Halloween horrors for taxpayers.
The Chancellor also opted to dramatically hike borrowing and spending — pledging to fix the country’s finances along with the NHS and schools.
Tory leader and former PM Rishi Sunak said: ‘They said they wouldn’t raise taxes on working people, they have’[/caption]
Costs will also see £1 added to seats on domestic flights and £12 for long-haul journeys.
And Ms Reeves mocked Mr Sunak — who has a home in California — when she said private jet users will face a 50 per cent hike in air passenger duty.
Wealthy passengers currently pay a duty rate of £78 for short-haul and £581-£607 for long-haul trips.
She said: “But I am taking a different approach when it comes to private jets, increasing the rate of air passenger duty by a further 50 per cent.
“That is equivalent to £450 per passenger for a private jet to, say, California.â€
There was also a pledge to abolish the “outdated†non-dom tax regime, which will kick in from April next year.
The Chancellor will introduce a residence-based scheme, which critics have said could deter investors.
'She is governing at No11 as Labour’s Red Queen'
By Kate Ferguson, Sun on Sunday Political Editor
RACHEL Reeves may have campaigned on being the Iron Chancellor and heir to Margaret Thatcher.
But be in no doubt — she is governing from No11 as Labour’s Red Queen.
Rachel allowed herself a brief smile before dropping her £40billion tax bomb.
Demure in a purple pussy bow shirt and freshly painted nails, she kicked off by trashing the Tories.
They had left a “£22billion black hole†and “covered it upâ€, she thundered.
This sparked pandemonium among the Tories. Rishi Sunak cried out.
Jeremy Hunt blinked and shook his head. James Cleverly jabbed his finger and argued with a Labour MP opposite.
Was he suggesting they take this outside? Surely it’s too soon for another Mike Amesbury-style dust-up.
Rachel kept calm and Âcarried on — raising taxes.
Booze and fags taxes up. Capital gains and inheritance tax up. Business taxes up by £25billion.
Sir Keir Starmer looked uncomfortable at this one. He played with his fingers. His shirt collar suddenly felt a little tight. Was it getting too hot?
There were some wins. Fuel duty frozen and no income tax hike, as feared.
But Rishi was white hot with fury.
He accused Labour of “breaking promises†and lying to voters.
Tories cheered. Could it be that Rishi had finally won over his warring MPs?
Too late now. His response to this Budget was his swan song. Rishi hands over to a new opposition leader in three days’ time.
