Chancellor Rachel Reeves has delivered Labour’s first Budget since 2010.

Here’s a summary of some of the key measures announced.

Rebuilding Britain

• Commitment to fix an extra million potholes per year, with an additional £500m for local road maintenance in 2025-26 –bringing the total amount dedicated to fixing the roads in England over the next year to nearly £1.6bn.
• Capital investment will increase by £13bn next year, taking total departmental capital spending to £131bn in 2025-26.
• This includes increased investment in local roads maintenance and local transport.
• An extra £200m will be given to Metro Mayors for local transport in 2025/26, bringing City Region Sustainable Transport Settlements to more than £1.3bn.
• More than £650m for improving transport in towns, villages, and rural areas alongside our city regions.
• R&D investment of £20.4bn allocated in 2025-26.
• To boost digital infrastructure in under-served areas across the UK and support growth in the digital and technology sectors, the government will invest over £500m in Project Gigabit and the Shared Rural Network next year.

Transport

• Commitment to fund tunnelling work to take HS2 high-speed rail line to Euston station in central London.
• Securing the delivery of the Trans-Pennine upgrade to connect York, Leeds, Huddersfield and Manchester, delivering fully electric local and regional services between Manchester and Stalybridge by the end of this year, with a further electrification of services between Church Fenton and York by 2026.
• Delivery of East-West Rail to drive growth between Oxford, Milton Keynes and Cambridge.
• £1.3bn of funding to improve connectivity in city regions, funding projects including the Brierley Hill Metro extension in the West Midlands and the West Yorkshire Mass Transit, including in Bradford and Leeds.
• Single bus fares kept down at £3 until the end of 2025, as part of a £1bn package to support bus services across the country.

Energy

• Funding for 11 new green hydrogen projects across England, Scotland and Wales.
• Warm Homes Plan - £3.4bn over the next three years to transform 350,000 homes
• Providing funding next year to set up GB Energy at its new home in Aberdeen.

Public finances

• Employer National Insurance will increase by 1.2 percentage points, to 15% from 6 April 2025. The Secondary Threshold – the level at which employers become liable to pay national insurance on each employee’s salary – will reduce from £9,100 per year to £5,000 per year.
• Small firms protected as the Employment Allowance will increase to £10,500 from £5,000 and be extended to all eligible employers by removing the £100,000 cap.
• Capital Gains Tax (CGT) will increase from 10% to 18% for those paying the lower rate, and 20% to 24% for those paying the higher rate.
• Inheritance tax thresholds will be fixed at their current levels for a further two years until April 2030

NHS and public services

• Additional £22.6bn for day-to-day spending over two years for the Department of Health and Social care, supporting the NHS to deliver an extra 40,000 elective appointments per week.
• £1.5bn capital funding for new surgical hubs, diagnostic scanners and new beds across the NHS estate to create more treatment space in emergency departments, reduce waiting times and help shift more care into the community.
• £100m to carry out 200 GP estate upgrades across England.
• Additional £4bn for education including £2.3bn into the core schools’ budget.
• £1.4bn to rebuilding “crumbling” schools and college buildings.

Personal finances

• Freeze on income tax and National Insurance thresholds to end in 2028.
• National Living Wage will increase from £11.44 to £12.21 an hour from April 2025 and £8.60 to £10.00 an hour for 18-20-year-olds.
• Freeze on fuel duty for one year and extending the temporary 5p cut to 22 March 2026.
• Freeze on inheritance tax thresholds extended beyond 2028 to 2030.