Reeves reaps £30bn windfall from wealth taxes

The article outlines how Chancellor Rachel Reeves’ tax changes helped the Treasury collect a record £30bn from capital gains and inheritance taxes in 2025-26, trimming borrowing to £132bn. Markets remain volatile: the FTSE 100 fell at the open amid oil-driven risk from the Iran war before recovering most losses, while 10-year gilt yields jumped (around 4.9%) as traders priced in higher Bank of England rates. PMI data showed a rebound in private-sector activity but record input cost inflation, heightening the chance of further rate hikes and stoking inflation forecasts near 5%. Wider market moves included US indices slipping after Middle East escalation and Brent crude topping $103/bbl, feeding through to UK equities, gilts and rate expectations.