Chancellor Rachel Reeves has delivered her second Budget, laying out a series of tax rises as she aims to fill a black hole in the public finances.

Ms Reeves also announced a series of measures aimed at helping people who are currently struggling with living costs, including a long-expected end to the two-child limit on benefits.

The Chancellor was gazumped in laying out her Budget by the unexpected early publication of the Office for Budget Responsibility (OBR) analysis of her plans.

Here are the main tax rises and cost-of-living measures the Chancellor announced at the Budget on Wednesday.

The Chancellor will extend the freeze on income tax thresholds until 2030, a move previously described as a “stealth” tax rise, but which Ms Reeves billed as “asking everyone to make a contribution”.

This will drag more people into paying the tax for the first time, and others into paying a higher rate, as wages rise.

The OBR said the freeze in tax thresholds would result in 780,000 more basic-rate, 920,000 more higher-rate and 4,000 more additional-rate income tax payers in 2029/30, and estimated it will raise about £7.6 billion in 2029-30.

This has been billed as stealth tax by many, including Martin Lewis, who says: "Fiscal drag remains. Its a stealth tax. Freezing thresholds while average earnings rise mean people pay a bigger proportion of their income in tax."

"I will maintain all income tax and national insurance thresholds for a further three years from 2028".

Translation. Fiscal drag remains. Its a stealth tax. Freezing thresholds while average earnings rise mean people pay a bigger proportion of their income in tax. #Budget2026

— Martin Lewis (@MartinSLewis) November 26, 2025

Greg Marsh, household finance expert and CEO of smart money-saving tool Nous.co agrees: “The Chancellor’s decision to extend stealth taxes for another three years is a huge blow for working people.

“A typical household will be £267 worse off next year alone because of frozen thresholds – and for two earners on £70,000, the hit is closer to £800.

“Despite Labour’s promises not to increase taxes for working people, that’s exactly what they (and the previous Government) have been doing.

“People are being left with a larger tax bill – it’s just being done in a sneaky and backhanded way. The fact that this is obscure and hard to understand is precisely what makes this such an effective tax grab.”

Ms Reeves will limit the amount of money people can put into their private pension pot, through a scheme called a salary sacrifice, before it incurs tax.

Anything above the new £2,000 cap will incur national insurance contributions from 2029, a move which has been estimated to raise £4.7 billion in 2029-30 and £2.6 billion in 2030-31. At the moment there is no limit.

Frank Smith, Managing Director of Frank Smith & Co. Solicitors says: “This will have immediate and tangible implications for families, high earners, business owners and trustees of pension schemes. Furthermore, we can expect to see a direct impact on succession planning,........

© South Wales Argus