{"id":988,"date":"2025-11-25T08:58:14","date_gmt":"2025-11-25T08:58:14","guid":{"rendered":"https:\/\/badvibes.live\/?p=988"},"modified":"2025-11-25T08:58:14","modified_gmt":"2025-11-25T08:58:14","slug":"all-of-the-taxes-that-might-increase-in-rachel-reevess-budget-next-week","status":"publish","type":"post","link":"https:\/\/badvibes.live\/?p=988","title":{"rendered":"All of the taxes that might increase in Rachel Reeves\u2019s Budget next week"},"content":{"rendered":"

\"\"<\/p>\n

Questions about rumoured tax rises will be answered next week at this year\u2019s\u00a0Budget<\/a>\u00a0when it is delivered by\u00a0Rachel Reeves<\/a><\/strong>\u00a0on Wednesday.<\/p>\n

The Chancellor<\/a>\u00a0will be outlining\u00a0key decisions on taxes<\/a>\u00a0and changes to public service spending, such as for the\u00a0NHS<\/a>,\u00a0schools<\/a>\u00a0and the police.<\/p>\n

Previously the Labour Party\u00a0promised in its manifesto<\/a>\u00a0to not raise income tax, National Insurance or VAT on \u2018working people\u2019.<\/p>\n

But doubts have been cast on this commitment since Starmer and Reeves have\u00a0failed to rule out tax rises<\/a>\u00a0in recent comments and the government has stressed the dire financial situation at play.<\/p>\n

\"\"<\/p>\n

What time is the Autumn Budget and when does it come into effect?<\/h2>\n

Rachel Reeves will deliver the Budget in the the\u00a0House\u00a0of Commons on Wednesday,\u00a0November 26<\/a>\u00a0at around 12.30pm. The statement will come just after Prime Minister\u2019s Questions and last for roughly an hour.<\/p>\n

The announcement is made to MPs and\u00a0Kemi Badenoch<\/a>, the Leader of the Opposition, will give a response immediately afterwards.<\/p>\n

After Reeves\u2019s statement, the government will have to introduce and pass a Finance Bill to enact their policies. It will have legal effect once the bill gains Royal Assent, which for the Autumn Budget last year happened in March 2025.<\/p>\n

Changes usually come into place for the following tax year starting in April.<\/p>\n

What does Reeves want for the Budget?<\/h2>\n

\"\"<\/p>\n

The government needs more money to put Reeves on course to meet the \u2018rules\u2019 that she described as \u2018non-negotiable\u2019 after becoming Chancellor:<\/p>\n

    \n
  1. No borrowing to fund day-to-day public spending by the end of this parliament.<\/li>\n
  2. To decrease government debt as a share of national income by the end of this parliament.<\/li>\n<\/ol>\n

    Economic think tank the Institute for Fiscal Studies (IFS) has suggested this means Reeves will need a \u2018tightening\u2019 of \u00a322billion to restore the headroom she gave herself at this year\u2019s Spring Forecast.<\/p>\n

    But the Treasury has indicated the Chancellor feels that headroom was too small and she wants to give herself more this time round.<\/p>\n

    Reeves has made it clear she does not want a return to austerity and government debt is already too high, which seems to leave tax rises as the only means of bringing in the dosh.<\/p>\n

    Confused about this week’s Budget?<\/h2>\n
    \n

    Hello, I\u2019m Craig Munro:\u00a0Metro\u2018s man in\u00a0Westminster and writer of our\u00a0weekly politics newsletter Alright, Gov?<\/a><\/strong><\/p>\n

    Each week I break down the latest government policies and bring you insights from behind the scenes in the Houses of\u00a0Parliament.<\/p>\n

    \n

    \"\"<\/p>\n

    Are taxes going to go up in the autumn Budget?<\/h2>\n

    The IFS said Reeves will \u2018almost certainly<\/a>\u2019 have to raise taxes in order to bring in funds to keep her economic targets.<\/p>\n

    On top of this, the Chancellor has said that she wanted to make sure the UK had \u2018sufficient headroom\u2019\u00a0to prepare for any future finance shocks at a gathering of business leaders in\u00a0Saudi Arabia<\/a>.<\/p>\n

    This suggests the \u00a39.9billion buffer she passed in last year\u2019s Budget was not enough, making it even more likely that we will see\u00a0tax increases<\/a>.<\/p>\n

    Property Tax<\/strong><\/h3>\n

    Stamp duty<\/a>\u00a0and other property taxes are predicted to see some of the most significant change as the\u00a0Labour government<\/a>\u00a0has repeatedly ruled out raising income tax, national insurance or VAT \u2013 more on that later.<\/p>\n

    It has been rumoured that the government may replace stamp duty, the tax that buyers pay on properties above a threshold value in England and\u00a0Northern Ireland<\/a>, with a property tax.<\/p>\n

    Capital gains tax<\/a>\u00a0(CGT) is a charge applied to the increase in the value of an asset when you sell it. Main homes are currently exempt, but it applies to sales like\u00a0stocks<\/a>, shares, artwork and second homes.<\/p>\n

    \"\"<\/p>\n

    The Times<\/a>\u00a0have said that government is considering introducing CGT for pricier homes. This is despite\u00a0Keir Starmer<\/a>\u00a0\u2018absolutely\u2019 guaranteeingbefore last year\u2019s election that capital gains taxes would not be put on primary home sales.<\/p>\n

    A potential\u00a0\u2018mansion tax\u2019<\/a>\u00a0would aim to raise \u00a3600million and could apply to 1,300,000 families, particularly in areas with higher house values.<\/p>\n

    The\u00a0BBC reported<\/a>\u00a0that landlords may also be required to pay\u00a0National Insurance<\/a>\u00a0(NI) if being a landlord is their main job, they rent out more than one property or they are buying new properties to rent out.<\/p>\n

    A focus on landlord taxes may be particularly awkward for the Chancellor, after\u00a0she faced calls to resign last month<\/a>\u00a0over failing to apply for a licence for renting out her family home in London.<\/p>\n

    Income Tax, National Insurance and VAT<\/strong><\/h3>\n

    The big question for the Autumn Budget is if Labour will break a key manifesto pledge \u2013 that they would not increase income tax, NI or VAT.<\/p>\n

    Those three taxes are the biggest potential moneymakers for the Treasury, and the daunting fiscal challenge likely facing the Chancellor means she may decide they need to break the commitment.<\/p>\n

    Reeves raised speculation in October by saying the Labour government would work to keep taxes on working people \u2018as low as possible\u2019.<\/p>\n

    This speculation has gone into overdrive at PMQs where\u00a0Keir Starmer<\/a>\u00a0did not rule out raising these taxes as he has done in the past when asked about them by Kemi Badenoch.<\/p>\n

    The same happened in Reeves\u2019s unusual Downing Street speech on November 4 where she said the government would make \u2018necessary choices\u2019 and did not rule out tax rises in the Budget.<\/p>\n

    But there is still a chance the government just wants to keep expectations low so they get extra credit if they do not end up breaking the pledge.<\/p>\n

    Some Westminster chatter had also suggested Reeves would increase income tax by 2p while cutting National Insurance by the same amount to argue that technically taxes haven\u2019t been raised on working people.<\/p>\n

    However, the Chancellor appeared to\u00a0U-turn on this speculation<\/a>\u00a0and will keep income tax rates frozen for two years. According to the Financial Times, she had been swung by better than expected OBR forecasts.<\/p>\n

    Pension Tax<\/strong><\/h3>\n

    \"\"<\/p>\n

    Rumours have surfaced that the government plans to further restrict the 25% tax-free cash that can be taken from pension pots once people reach the age of 55.<\/p>\n

    That measure was expected from\u00a0last year\u2019s Budget<\/a>, but never happened.<\/p>\n

    The government may also limit how much can be contributed to a pension fund without paying NI to a \u00a32,000 cap. This is for workers investing in their pensions under \u2018salary sacrifice\u2019 schemes at work.<\/p>\n

    According to\u00a0The Times<\/a>, the plan to limit tax-free pension contributions hopes to raise \u00a32billion.<\/p>\n

    Inheritance Tax<\/strong><\/h3>\n

    There were some complicated long-term Inheritance Tax changes set out in last year\u2019s budget, which could be expanded.<\/p>\n

    They included the plan to impose\u00a0Inheritance Tax<\/a>\u00a0on agricultural assets from April 2026.<\/p>\n

    The unused value of person\u2019s pension funds will be also added to the cost of their estate for the rate of Inheritance Tax from April 2027.<\/p>\n

    Tax on EV Drivers<\/strong><\/h3>\n

    \"\"<\/p>\n

    Drivers of petrol and diesel vehicles currently pay fuel duty when they fill up at the pump and the tax is expected to bring in \u00a324.4billion for the Treasury this year.<\/p>\n

    But there\u2019s one problem for the government \u2013 the sale of petrol and diesel cars will be phased out from 2030 as drivers are encouraged to drive\u00a0electric vehicles<\/a>\u00a0(EVs) instead.<\/p>\n

    The\u00a0Daily Telegraph<\/a>\u00a0has reported Reeves could announce a pay-per-mile tax for EVs at the Budget.<\/p>\n

    A government spokesperson said: \u2018Fuel duty covers petrol and diesel, but there\u2019s no equivalent for electric vehicles.<\/p>\n

    \u2018We want a fairer system for all drivers whilst backing the transition to electric vehicles, which is why we have invested \u00a34billion in support, including grants to cut upfront costs by up to \u00a33,750 per eligible vehicle.<\/p>\n

    \u2018Just as it is right to seek a tax system that fairly funds roads, infrastructure and public services, we will look at further support measures to make owning electric vehicles more convenient and more affordable.\u2019<\/p>\n

    There are government grants to buy EVs on 39 models and infrastructure rules are being overhauled so that\u00a0more charging points are available<\/a>\u00a0for EV drivers at their homes and in public.<\/p>\n

    Wealth Tax<\/strong><\/h3>\n

    \"\"<\/p>\n

    There are many calls for Labour to increase taxes on the\u00a0UK\u2019s most wealthy<\/a>, but there is no party-wide agreement on the idea.<\/p>\n

    It could take the form of an annual charge on people with assets exceeding a certain threshold.<\/p>\n

    The group Patriotic Millionaires UK has called on the Chancellor to raise taxes on \u2018the super-rich\u2019 as a non-partisan network of millionaires themselves with backgrounds in a variety of industries.<\/p>\n

    Reeves has said that Britain does not need \u2018a standalone wealth tax\u2019.<\/p>\n

    Will the budget address the cost of living crisis?<\/h2>\n

    \"\"<\/p>\n

    The Chancellor has told\u00a0the BBC<\/a>\u00a0earlier this month that she would \u2018take targeted action to deal with cost-of-living challenges\u2019, particularly as inflation remains high.<\/p>\n

    Reports since have suggested the government could decrease gas and electricity bills by cutting the current 5% rate of VAT charged on\u00a0energy<\/a>, or by reducing regulatory costs enforced by suppliers.<\/p>\n

    Starmer and Reeves have also been hinting at an\u00a0end to the two-child benefit cap in the Budget<\/a>, which currently means families cannot claim Universal Credit or Child Tax Credits for more than two children.<\/p>\n

    Campaigners have said the move could lift 350,000 children out of poverty, while Reeves has said kids \u2018should not be penalised because their parents don\u2019t have very much money\u2019.<\/p>\n

    However, the Chancellor has also announced she may\u00a0strip young people of benefits<\/a>\u00a0if they refuse a job.<\/p>\n

    This is part of\u00a0plans to tackle unemployment<\/a>, so young people who have not worked for 18 months will be guaranteed jobs or be stripped of benefits if they do not take up the offer.<\/p>\n

    In the spending review, Reeves also outlined an extra \u00a32.2billion for defence. This significant spend will likely be clarified in the Budget.<\/p>\n

    How could the budget affect Labour\u2019s prospects?<\/h2>\n

    \"\"<\/p>\n

    The Autumn Budget comes at a time of difficult economic and political circumstances for the government.<\/p>\n

    Breaking manifesto pledges on tax rises will risk damaging trust in the government, whilst not raising enough money may require unpopular cuts in spending on public services.<\/p>\n

    Recent controversy around Reeves\u2019s alleged rule-breaking as an unlicensed landlord put Labour in peril, but Starmer said he still has \u2018full confidence\u2019 in Reeves. Their\u00a0political goals and prospects<\/a>\u00a0are clearly bound up together.<\/p>\n

    At the most recent PMQs, Conservative leader Kemi Badenoch criticised that changing narratives around income tax plans showed the Budget was the first \u2018to unravel before it\u2019s even been delivered\u2019.<\/p>\n

    The government also face challenges within the party, with calls for the PM to be replaced by\u00a0Mayor of Manchester Andy Burnham<\/a>\u00a0returning this week and\u00a0new deputy leader Lucy Powell<\/a>\u00a0saying they had to do better to \u2018offer the big change the country is crying out for\u2019.<\/p>\n

    The Budget will be a vital test of financial responsibility and party unity for Labour at a time 79% of Brits think the economy is in a bad state and 77% say the government is doing poorly at managing the economy, according to recent\u00a0YouGov polling<\/a>.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    Questions about rumoured tax rises will be answered next week at this year\u2019s\u00a0Budget\u00a0when it is delivered by\u00a0Rachel Reeves\u00a0on Wednesday. The Chancellor\u00a0will be outlining\u00a0key decisions on taxes\u00a0and changes to public service spending, such as for the\u00a0NHS,\u00a0schools\u00a0and the police. Previously the Labour Party\u00a0promised in its manifesto\u00a0to not raise income tax, National Insurance or VAT on \u2018working people\u2019. […]<\/p>\n","protected":false},"author":1,"featured_media":999,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-988","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t