UK budget announced, Labour's rating continues to fall

Today, British Chancellor of the Exchequer Rachel Reeves will announce the Labour government's budget.

She promised to take “fair and necessary decisions, as she seeks to ensure economic growth while keeping public finances under control“.

Today is an extremely important day for British political and economic life, because the budget will largely determine how stable the government and the country's economy will remain.

On the eve of the event, Rachel Reeves said that she plans to increase the minimum wage by 4.1% as part of a package to raise living standards in the UK, with tax increases in the budget that will affect “working people“.

Reeves confirmed an increase in the minimum wage above inflation, with an even bigger increase for younger workers, noting that she wants low-paid workers to be “properly rewarded“.

“The Financial Times“ reports that the Chancellor's second budget aims to plug a fiscal hole estimated at around £30 billion with a series of big tax increases, alongside some spending cuts. She hopes the package will reassure financial markets that she has the public finances under control.

The budget will be underpinned by a “hidden“ increase in income tax, which could raise £10 billion a year. This figure is roughly equivalent to the extra money Reeves will need to find to fund higher welfare spending.

In addition to the opposition, many MPs from the ruling Labour Party are worried about an unpopular budget, as the party's ratings continue to fall and there is a lot of tension in its leadership. Even the future of Prime Minister Keir Starmer is believed to be at stake.

The British army has again suspended the use of its new "Ajax" armoured fighting vehicles after around 30 soldiers suffered vibration and hearing problems during a training exercise at the weekend, the Ministry of Defence said.

A ministry spokesman said the two-week pause came after "a small number of soldiers reported symptoms of noise and vibration" during the exercise, which was immediately suspended. The spokesman added that for security reasons, the deputy defense minister, Luke Pollard, has asked the army to stop all use of the "Ajax" while a proper investigation into the problems is carried out.

The "Ajax" armoured vehicle, which costs almost 10 million pounds and weighs more than 40 tons, is advertised by the ministry as a "next generation fighting vehicle". As heavy as a Russian tank, the vehicle is equipped with cameras, protective armor and a 40mm cannon with bullets that can pierce concrete.

Soldiers have already been hospitalized this summer after suffering hearing damage and other injuries due to loud noise and vibrations coming from the vehicles. In addition, the combat vehicles are being delayed by more than 8 years than planned.