On Wednesday, Rachel Reeves unveiled a significant £30 billion tax increase in the UK, responding to pressure from leftist factions to enhance benefit distributions.

The Chancellor disrupted Labour’s tax promises by instituting a three-year freeze on income tax and National Insurance thresholds, resulting in a £13 billion impact.

Simultaneously, she acquiesced to Labour’s call to remove the two-child benefit cap, initiating a spending surge that is expected to elevate welfare costs by £16 billion annually.

Reacting fiercely, Kemi Badenoch criticized the announcement as ‘a Budget for Benefits Street’, suggesting it burdens working citizens.

Nigel Farage also voiced his disapproval, labeling the Budget ‘an attack on ambition and savings’.

The warning came on a shambolic day which saw the financial markets go haywire after the Budget documents were leaked online 30 minutes before the Chancellor was due to start her long-awaited statement.

The Office for Budget Responsibility said economic growth under Labour would be even lower than forecast last year – and warned that none of the 88 measures unveiled by Ms Reeves on Wednesday would have a ‘material impact’ on boosting GDP.

The decision to axe the two-child cap was cheered by Labour MPs and could help secure the short-term survival of Ms Reeves and Sir Keir Starmer.

Rachel Reeves, pictured on Budget day, dropped a £30 billion tax bomb on Britain on Wednesday as she bowed to Left-wing demands to boost benefit handouts

The Chancellor shattered Labour’s manifesto pledges on tax with a £13 billion freeze on income tax and National Insurance thresholds lasting three years

But it will involve the taxpayer funding handouts worth thousands of pounds a year each to Britain’s biggest jobless families.

The OBR on Wednesday night warned that the largesse would result in a further 25,000 big families claiming benefits, at an estimated cost of £300 million.

In the most chaotic Budget in history:

• Official figures showed Labour will push the tax burden to an all time high of 38.3 per cent by the end of the decade. 
• Ms Reeves refused to rule out further tax raids next year, despite levying an unprecedented extra £70 billion in Labour’s first 18 months in office.

• The Chancellor hit salary sacrifice pensions schemes with a £4.7 billion raid.

•  Ms Reeves bowed to Left-wing demands for a ‘mansion tax’ of up to £7,500 a year despite Treasury warnings it will cost the taxpayer £300 million in lost revenue in the coming years.

• Motorists faced a double whammy, with fuel duty due to rise next year and Ms Reeves ushering in a new 3p-a-mile road pricing scheme for electric vehicles.

•  The Treasury set aside £1.8 billion for the development of Labour’s controversial plan for digital ID cards.

•  Ms Reeves unveiled plans to knock £150 off energy bills by switching some green levies onto the taxpayer.

•  The annual limit on cash ISAs was slashed from £20,000 to £12,000.

•  Total welfare spending is now forecast to top £400 billion a year – a rise of 22 per cent.

•  Experts warned one million older people living on the state pension will be dragged into the income tax system by the latest stealth raid.

•  Experts warned of rent increases after landlords were hit with a rise in the tax they pay on income.

•  Inflation is forecast to remain above target throughout next year.

Images from the Commons appear to show the moment Ms Reeves was handed a phone by minister Torsten Bell, informing her the Budget documents had been leaked online 

The Budget came almost a year to the day after Ms Reeves, pictured following today’s announcements, pledged she would not be ‘not coming back with more borrowing or taxes’

Wednesday’s Budget came almost a year to the day after Ms Reeves pledged she would not be ‘not coming back with more borrowing or more taxes’ after delivering a record £40 billion tax hike in last year’s Budget.

Instead she returned with a blizzard of new taxes, clobbering everything from milkshakes to mansions.

And when asked on Wednesday night if she would repeat her now broken promise, she refused to rule out further tax raids in future.

In total, the Chancellor raised or introduced 43 separate taxes – thought to be a record for any Budget – in what Mrs Badenoch dubbed a ‘smorgasbord of misery’. She is now on course to raise taxes more in her first 18 months in office than her Labour predecessor Gordon Brown did during a decade in the Treasury.

Across her two budgets, tax has gone up by nearly £70bn.

Ms Reeves had accused the Conservatives of ‘picking the pockets of working people’ by freezing tax thresholds to help cover the cost of huge debts run up during the pandemic.

Last year she vowed not to extend the freeze, saying it would break her manifesto pledge not to raise income tax and national insurance.

But on Wednesday she went back on her word, extending the freeze for another three years until 2031.

Ms Reeves returned with a blizzard of new taxes, clobbering everything from milkshakes to mansions

The stealth raid will drag one million more pensioners into the tax system, including many surviving on just the state pension. More than 10 million taxpayers – a quarter of the total – will end up paying 40p tax.

Ms Reeves acknowledged the freeze in tax thresholds would hit ‘working people’ – the group Labour had promised to protect – but she was ‘asking everyone to make a contribution’.

‘I can keep that contribution as low as possible because I will make further reforms to our tax system today to make it fairer and to ensure the wealthiest contribute the most,’ she said.

The Chancellor said she was not prepared to contemplate a return to ‘austerity’ by curbing government spending.

She told the Commons: ‘I’ve made my choices. Not reckless borrowing, not dangerous cuts, but stability for our economy. security for the public finances. and security for family finances too.’

Later she warned Labour MPs that the party still had to ‘win the argument’ about raising taxes again.

But she refused to rule out future hikes, saying: ‘I believe that we can beat those (growth) forecasts – we’ve beat them this year, the Conservatives’ legacy is not our country’s destiny. We also all know that if you ignore the forecasts you pay a huge price in the cost of government borrowing.’

Mrs Badenoch branded Ms Reeves ‘the country’s worst ever Chancellor’, adding: ‘If she had any decency she would resign.’

In a blistering response, Kemi Badenoch branded the Chancellor’s statement ‘a Budget for Benefits Street, paid for by working people’ 

The Tory leader said Labour should be rebranded the ‘welfare party’.

She added: ‘This is Labour’s Britain. People who work hard and save hard to buy their homes get taxed more, while those who don’t work, who in some cases refuse to work, get their accommodation paid for by taxpayers.’

Mrs Badenoch also rounded on the Chancellor over her claim that attacks on the Budget have been fuelled by ‘misogyny’.

Let me explain, woman to woman. People out there aren’t complaining because she’s female, they’re complaining because she is utterly incompetent,’ she said. ‘Real equality means being held to the same standard as everyone else. It means being judged on results.’

Ms Badenoch cited the 2014 Channel 4 reality show Benefits Street, which focused on the lives of benefit claimants living in a deprived part of Birmingham.

Helen Miller, director of the Institute for Fiscal Studies think tank, said the three-year freeze in tax thresholds ‘breaches the government’s manifesto tax promise’.

She warned that the Chancellor had also pencilled in ‘a sizeable increase in borrowing in the short term’.

Sir Mel Stride, the Conservative shadow chancellor, said Ms Reeves’s position was ‘untenable’ because she had ‘clearly’ broken her promises. ‘They have got to be accountable for what they are doing now,’ he said.