UK budget unveiled early: From two-child benefit cap to gambling taxes - here are major key points you must know

The UK's centre-left Labour government has released the country's yearly budget earlier than expected on Wednesday (Nov 26) - and with major changes. The budget is intended to curb debt and fund public services. Ahead of the budget announcement, British Prime Minister Keir Starmer vowed to reduce National Health Service waiting times and ease a prolonged cost-of-living crisis. The British Finance Minister Rachel Reeves, who raised taxes on businesses in her inaugural budget last year, returned with the new budget. This one will raise tens of billions of pounds, culminating in an extra £30 billion ($40 billion) from taxes in 2030-2031, official figures showed. Moreover, this budget has announced to lift the two-child benefit cap.

The key details of UK budget:

Two-child benefit limit scrapped

While announcing the reform, Reeves said she came into politics because she believes every child "deserves an equal chance" to achieve their goals. She said child poverty is the biggest barrier in this process. Reeves says that the Labour government is achieving "the biggest reduction in child poverty" over a Parliament since records began.

What it means: The two-child benefit cap means parents will be able to claim universal credit or tax credit for only the first two children.

Bus fare cap, fuel duty and energy scheme

In order to reduce the cost of living, the FM announced she was extending the bus fare cap and freezing rail fares and prescription charges. She then says she is scrapping the Eco energy scheme, which she says will cut £150 from the average household energy bill from April.

Gambling taxes increased

The Labour government has also announced a reform to gambling taxes. Remote Gaming Duty is being raised from 21 per cent to 40 per cent. Duty on online betting is increasing from 15 per cent to 25 per cent.

Cap on pension salary sacrifice

"I am introducing a £2,000 cap on salary sacrifice into a pension with contributions above that taxed in the same way as other employee pension contributions," Reeves said.

'These are my choices'

"These are my choices, not austerity, not borrowing, not turning a blind eye to unfairness," Reeves told the parliament while announcing the budget. "My choices are a budget for fair taxes, strong public services, and a stable economy," she added.