HMRC figures show £41.8billion surge in tax receipts after Rachel Reeves's Budget

The figures represent a substantial year-on-year increase across several major revenue streams.

Income Tax, Capital Gains Tax and National Insurance contributions accounted for the majority of the increase.

Together, these receipts totalled £329.5billion over the eight-month period, £34billion higher than the same period last year, a rise of 11 per cent year on year.

PAYE Income Tax and National Insurance contributions generated £309.6billion, a £32billion increase.

Self Assessment receipts, covering Income Tax, Capital Gains Tax and National Insurance contributions, reached £19.6billion.

One of the key measures was an extension of the freeze on Income Tax and National Insurance thresholds.

The freeze was extended for a further three years.

Thresholds are now set to remain frozen until April 2031 in England, Wales and Northern Ireland.

Chancellor Rachel Reeves acknowledged the impact of the policy during her Budget statement.

She said: "I know that maintaining these thresholds is a decision that will affect working people, I said that last year and I won't pretend otherwise now."

The Chancellor opted not to raise headline rates of Income Tax.

Instead, she relied on threshold freezes and a series of smaller tax measures to support spending plans.

The Office for Budget Responsibility (OBR) has estimated nearly one in four taxpayers will be paying the higher rate of Income Tax by 2031.

Conservative leader Kemi Badenoch accused the Chancellor of breaking previous commitments.

"Last year she put up taxes by £40bn, the biggest tax raid in British history", she said.

"She promised that she wouldn't be back for more. She swore it was a one-off."

Reform UK leader Nigel Farage described the Budget as "an assault on aspiration and an assault on saving".

He warned that working people would end up subsidising a welfare bill that continues to rise.

Liberal Democrat leader Sir Ed Davey said the Budget failed to address economic growth or the cost of living, arguing the measures would place additional pressure on households already facing financial difficulties.

The OBR has also published longer-term projections alongside the Budget.

The watchdog forecasts that the UK tax burden will rise to 38 per cent of national income by 2030–31.

This would be the highest level on record.

The OBR said the increase would be driven by the cumulative effect of frozen thresholds and new tax measures.

It also forecast slower economic growth than previously expected from next year.

Ms Reeves defended her approach following the Budget.

She said she had kept to Labour’s manifesto commitment not to raise VAT, Income Tax rates or National Insurance directly.

Speaking after her statement, Ms Reeves said: "I do recognise that I was asking ordinary people to pay a little bit more.

"I've managed to keep that contribution as low as I possibly can by closing loopholes and asking those with the broadest shoulders to pay more."