The National Living Wage will rise 4.1% to £12.71 per hour for workers aged 21 and over, with the government projecting about £900 more in annual earnings for a full-time worker and benefiting roughly 2.4 million low-paid workers.

For younger workers, the minimum wage increases to £10.85 for 18–20-year-olds (up 8.5%), and to £8.00 for 16–17-year-olds and apprentices (up 6%), as part of a broad move to raise wages across age groups.

Overall, the changes are framed as rewarding low-income workers, narrowing wage gaps, and supporting employment while acknowledging potential impacts on employers and the wider economy.

Industry voices warn of inflationary pressures and call for tax relief or cost controls to offset higher wage costs, noting potential effects on employment and prices.

Business reaction stresses that above-inflation wage rises increase employer costs, possibly impacting investment and jobs, and urges Budget measures to ease cost pressures and avoid extra business taxes.

Industry notes that higher minimum wages raise costs for employers and could affect prices, investment, and youth employment, with calls for tax relief or other Budget measures to mitigate impacts.

Reeves frames the Budget as a broader package with Labour positioning it as progressive and aimed at economic stability, trade deals, and reforms to business rates, set against political dynamics and polling.

UKHospitality leader Kate Nicholls urged Budget support such as maximum hospitality rate discounts on business rates and protection from penalties for venues exceeding thresholds.

Auxiliary Budget items include expanding the sugar tax to milk-based drinks, potential private finance for NHS clinics, a proposed tourist tax, and a suite of other measures to be announced.

Stakeholder reactions include support from unions like the TUC and GMB, balanced by concerns from hospitality and retail sectors about higher costs and price pass-through; commentary notes the Living Wage Foundation gap to the real living wage.

Also noted are calls for further Budget measures to ease business tax burdens and address affordability for employers while supporting workers.