In a historic first Budget, Chancellor Rachel Reeves announced a significant rise in taxes totaling £40 billion, marking the largest tax increase since 1993. The budget aims to address a funding shortfall while enhancing investment in the NHS and housing. Borrowing costs have spiked following the announcement, with the UK government bonds recovering slightly amidst concerns of rising fiscal pressures. Reeves, the first female Chancellor, emphasized a commitment to long-term economic growth, despite critics warning that the drastic tax hikes may stifle growth. The budget also includes reforms to capital gains and inheritance taxes and outlines plans for £35 billion in additional investment. Economists predict that these measures will keep interest rates elevated and have a mixed impact on households.