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What Labour's first Budget means for your money in Ipswich

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Chancellor Rachel Reeves announced her first budget since Labour returned to power, introducing changes affecting wages, taxes, and daily costs for Ipswich residents.

The big picture: The Budget delivers minimum wage increases and support for carers while introducing new taxes on vaping, adjusting alcohol duties, and making changes to housing policies and transport costs.

Here are the key changes affecting your wallet:

  • Wages: If you're over 21, the minimum wage rises to £12.21 per hour from April (up from £11.44). Younger workers aged 18-20 will see their minimum rate jump to £10.

  • Travel costs: Bus fares will increase as the £2 cap on single journeys rises to £3 from January. Drivers get some relief as the 5p fuel duty cut continues for another year.

  • Vaping: A new £2.20 tax per 10ml of vaping liquid starts from October 2026.

  • Alcohol: Pub-goers benefit from a 1.7% tax cut on draught drinks, but other alcoholic beverages will see tax rises in line with inflation.

  • Smoking: Tobacco tax increases by 2% above inflation, with hand-rolling tobacco rising by 10% above inflation.

Rachel Reeves with the Budget briefcase
Rachel Reeves announced her first budget since Labour returned to powerAlamy

For carers: The earnings threshold for full-time carer allowances increases from £151 to £195 weekly, meaning carers can earn more while keeping their benefits.

Housing impact: Second-home buyers face higher costs as the stamp duty surcharge rises from 3% to 5%, but there is a £500m boost to the affordable homes budget, which runs until 2026. Social housing providers can increase rents above inflation as part of a multi-year settlement.

Looking ahead: Income tax band thresholds will rise with inflation after 2028, which should prevent more people from being pushed into higher tax bands as wages increase.

The bottom line: While workers on minimum wage will see significant increases in their pay, new taxes on vaping and changes to housing costs could impact household budgets.

Stop, look, listen, live: Police teach vital road safety to nursery children

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Young children at Hillside Nursery learned essential road safety rules through interactive sessions with police officers. The visit combined practical demonstrations with storytelling to help children understand safety messages.

Why it matters: Early safety education helps protect young children and establishes good habits that can last a lifetime.

The big picture: Ipswich Police are working to engage with children of all ages through interactive learning sessions, combining practical demonstrations with age-appropriate teaching methods.

Police teach vital road safety to nursery children at Hillside Nursery
Police teach vital road safety to nursery children at Hillside NurserySuffolk Police

The details: During the visit, two Ipswich police officers:

  • Demonstrated police equipment and allowed children to explore a police car

  • Taught road safety using the memorable phrase "stop, look, listen, live"

  • Measured children's heights to explain car seat requirements

  • Used a new storybook, "PC Ben", to explain police officers' roles

  • Checked previous craft projects made by the afternoon group

Between the lines: The visit represents a shift in community policing, focusing on early intervention and positive engagement rather than just enforcement.

The bottom line: By making safety education interactive and fun, police officers are helping Ipswich's youngest residents understand crucial safety messages while building positive relationships with law enforcement from an early age.

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