Chancellor Rachel Reeves has unveiled a controversial budget that includes significant changes to taxation and welfare policies. Key measures include the scrapping of the two-child benefit cap, the introduction of a new "mansion tax" on high-value properties, and increased income tax rates on savings, dividends, and property earnings. In a move that has raised eyebrows, Reeves announced that income tax thresholds will be frozen until the 2030-31 tax year. This freeze is expected to affect over 40 million taxpayers, including many pensioners, and will result in millions being pushed into higher tax brackets. Analysts estimate that this decision will cost taxpayers approximately £8.3 billion annually, accumulating to nearly £25 billion over the next three years. Despite previous assurances that Labour would not raise taxes on working people, Reeves has faced criticism for extending the freeze on income tax thresholds beyond what was anticipated. The freeze, originally set to end in 2028, will now last for a total of nine years, leading to increased financial burdens on many households. Reeves defended her budget, claiming, "We have kept every single one of our manifesto commitments," despite the apparent contradictions in her policies. Critics, including Conservative leader Kemi Badenoch, have pointed out that the budget disproportionately impacts working individuals while providing additional support to those on benefits. The budget also includes an extension of the freeze on inheritance tax bands and does not address the rising welfare costs, which are projected to exceed £400 billion. The Office for Budget Responsibility (OBR) has warned that the UK faces five years of stagnating living standards, with real household disposable income expected to grow by only 0.25% annually. As the economic landscape shifts, taxpayers are urged to assess how these changes will affect their finances. The OBR's forecasts indicate that the cumulative borrowing will be nearly £70 billion higher than previously expected, largely due to Labour's welfare policies and net zero commitments. For those seeking clarity on how these budget changes will impact their personal finances, the economics editor Heather Stewart and money editor Hilary Osborne will be available to answer questions. However, they will not provide individual financial advice. The implications of this budget are significant, and many are left wondering how these policies will shape the future of taxation and welfare in the UK.