Watch Budget 2024 reside: Reeves to lift taxes by £40bn

Rachel Reeves has revealed taxes will rise by £40bn as she began delivering the first Budget by a Labour government in 14 years.

The Chancellor said the Tories had failed to budget for the cost of the infected blood and Post Office Horizon scandal compensation. 

She said: “The black hole in our public finances this year, which recurs every year, the compensation payments which they did not fund and their failure to assess the scale of the challenges facing our public services means this budget raises taxes by £40bn.”

The Chancellor said that “change must be felt”, adding “the only way to drive economic growth is to invest, invest, invest.” 

She revealed the Office for Budget Responsibility expects the economy to grow by 1.1pc this year, with growth rising to 1.6pc annually by 2029.

Sir Keir Starmer has warned the nation to prepare for “tough decisions” to be made, adding it is a “huge day for Britain”.

He warned: “We won’t shy away from the tough decisions to grow our economy and protect working people’s payslips.”

You can join the conversation in the comments section.