British Chancellor of the Exchequer Rachel Reeves increased taxes by 26 billion pounds in a budget that affects "working people", the rich and businesses.
Thus, the total tax burden reaches 38% of GDP by the end of the parliamentary term, which is a record high, comments the "Financial Times".
Rachel Reeves, who increased taxes by 40 billion pounds in her first budget last year, will direct most of the additional revenue to cover higher spending on social benefits and to strengthen her fiscal buffer against future shocks.
Labour MPs have welcomed higher taxes on landlords and dividends, as well as a new "estate tax" on homes worth over £2m, but ordinary Labour voters will take a big hit from the Chancellor's tax increases.
Reeves announced that income tax thresholds would be frozen for an extra three years, raising £12.7bn by 2030-31, the biggest single revenue boost in her sweeping budget. Speaking in the House of Commons, Reeves said: "I'm asking everyone to do their bit", confirming her previous admission that the so-called "hidden tax" will hurt working people and she will not pretend that it is not.
Reeves' budget will part-finance almost £10 billion in extra spending on welfare, including more than £3 billion to remove the two-child limit. The announcement won Labour's biggest cheers of the day, but Conservatives argue that working people pay higher taxes to fund extra benefits, especially for families with large numbers of children.
Earlier in the week, Labour MPs forced Reeves to abandon some unpopular welfare cuts.
Several arrests were made after farmers drove tractors into central London in protest on Budget day. Farmers are protesting against plans to impose an inheritance tax on agricultural businesses worth more than £1m.
At least 12 tractors were seen parked outside Parliament since early this morning, blocking traffic during rush hour, with farmers honking their horns as police initially looked on.
A farmer from Kent told the BBC that inheritance tax would cripple farmers, small family farmers.
A government spokesman said the government was supporting farmers with the biggest environmental budget in history, with more than £2.7bn a year to help them grow their businesses.
However, the Metropolitan Police later intervened, having previously imposed conditions that vehicles should not be allowed in and advised offenders to leave. A police spokesman said the majority had listened and complied with the conditions, but a few arrests had still been made.
Nigel Farage of "Reform UK" said his party would pay for the defence of farmers arrested at the demonstration, calling the incident "outrageous".