Chancellor unveils action on energy bills, rail fares and two-child benefit cap as she reveals £26bn tax rises

• How does freezing tax thresholds affect your tax bill?

• Budget 2025: key points at a glance

Rachel Reeves has declared her budget will slash living costs for millions including ending the two-child benefit limit and cutting energy bills, but taxes are set to soar by £26bn to plug a gaping shortfall in the public finances.

Major measures in the budget leaked early in a shock accidental release by the Office for Budget Responsibility (OBR), triggering an instant bond market reaction an hour before the chancellor was on her feet in the House of Commons. After months of speculation, Reeves said her measures would put the public finances on a sustainable path while building “a fairer, a stronger, a more secure Britain” by tackling inflation and investing in large infrastructure projects.

Chancellor says she will not ‘get into semantics’ when questioned on issue after her statement

• At a glance: the key points from the budget

• How does freezing income tax thresholds affect you?

Paul Nowak, the TUC general secretary, has rejected the concerns raised by the Resolution Foundation (see 9.54am) about the rise in the minimum wage rates. Asked about the thinktank’s comments, Nowak told Times Radio:

I don’t accept those concerns ...

First of all, that recommendation is based on the Low Pay Commission, which brings together employers, unions, independent experts, they’re tasked with making a recommendation on the minimum wage, which balances getting money into people’s pockets and the impact on unemployment.