Anticipated Labour Budget announcements: Potential unveilings by Rachel Reeves
The forthcoming Autumn Budget, to be delivered by Chancellor Rachel Reeves, is expected to include significant tax rises across various sectors due to fiscal pressures and a large budget shortfall.
Prime Minister Keir Starmer has hinted that tax hikes will likely be included in the Budget, a move that aligns with Labour's long-standing commitment to crack down on tax avoidance and loopholes, including the potential abolition of the non-dom status.
One of the areas under scrutiny is Capital Gains Tax. While no specific changes have been confirmed yet, substantial tax rises are anticipated to meet fiscal rules, making increases in this area a possibility.
Another prime target for reform is Inheritance Tax. Discussions are ongoing regarding raising revenues by changing inheritance tax rules or introducing a wealth tax. Chancellor Reeves faces strong pressure to generate revenue in this area.
Regarding State Pension and private pensions, no direct changes have been detailed. However, the broader fiscal tightening might impact these areas indirectly. Notably, Labour has not promised to shield the state pension from income tax in the same way as the Conservatives have with the "triple-lock plus" pledge.
Private school fees could also see changes, with Labour confirming that it will add VAT to these fees from 1 January 2025, which could increase costs by up to 20%.
Labour's flagship housing policy, the Freedom to Buy scheme, aiming to help 80,000 people onto the property ladder over the next five years, does not appear to be a direct target in the current reports.
Stamp Duty, although not specifically referenced as a target, could be reviewed given the emphasis on tax rises.
Air Passenger Duty, while not explicitly mentioned, is a common target in fiscal tightening or environmental tax policies.
The British ISA has not been mentioned in the sources as a potential area for changes.
It's worth noting that the Budget, also known as the "red box", is likely to contain information about some of Labour's manifesto pledges. This fiscal event will be the first Budget Labour has delivered in 14 years.
The Budget is expected to contain "difficult decisions" and be "painful". Chancellor Rachel Reeves has accused the previous government of leaving a £22 billion black hole in the public finances.
Overall, the strongest signals point to inheritance tax reforms and potential broader tax increases on wealth, while some pension tax benefits like the tax-free lump sum are under active debate but could face preservation due to criticism. Other areas such as capital gains tax and stamp duty may also see adjustments as part of the wider tax rise agenda shaped by the strict fiscal rules the government pledges to meet.
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- The Autumn Budget, delivered by Chancellor Rachel Reeves, is projected to include significant tax rises across various sectors due to fiscal pressures, with discussions ongoing about inheritance tax reforms and potential broader tax increases on wealth.
- One of the areas under scrutiny is Capital Gains Tax, with substantial tax rises anticipated to meet fiscal rules, making increases in this area a possibility.
- Private school fees might see changes, as Labour has confirmed it will add VAT to these fees from 1 January 2025, which could increase costs by up to 20%.
- The British ISA has not been mentioned in the sources as a potential area for changes. The Budget, also known as the "red box", is likely to contain information about some of Labour's manifesto pledges and could contain details about the party's flagship housing policy, the Freedom to Buy scheme.
