Sixteen key highlights from Rachel Reeves' Budget 2024 including wage rise and new vape tax

Rachel Reeves has announced a series of changes to tax and spending in her first Budget as chancellor.

The chancellor laid out how she would raise £40 billion a year in extra taxes during her speech to MPs in the House of Commons on Wednesday afternoon.

Ms Reeves said the measures were necessary to address the “black hole” in the public finances left by the Tories while pumping billions into schools and hospitals.

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Announcements included a 6.7 per cent hike to the minimum wage and a 4.1 per cent increase for people on state pensions.

Ms Reeves also committed to freezing fuel duty for an extra year and announced a new tax of vaping set to come into force in 2026.

The chancellor maintained her promise not to hike taxes for working people, but confirmed plans to hike employers’ national insurance contributions and increase capital gains tax. Changes to inheritance tax were also laid out in the Budget.

Here are 16 key highlights from Ms Reeves' first Budget under the new Labour government and what impact they may have on your financed.

The National Living Wage for people ages 21 and over will rise by 6.7 per cent to £12.21 an hour next April, Ms Reeves announced. The increase, recommended by the Low Pay Commission, will mean an extra £1,400 a year for a full-time worker.

Ms Reeves said the government is moving towards "a single adult rate" which will be phased in over time and announced a significant increase to the minimum wage for younger workers.

The minimum wage for 18 to 20 year olds will rise by £1.40 to £10 an hour - an