Summary
Chancellor Rachel Reeves plans to make "fair choices" in the upcoming Budget, which is expected to include tax increases to balance the government's finances. She aims to focus on fairness, reduce the national debt, and address the cost of living. An influential think tank suggests raising income tax while offsetting it with National Insurance cuts to generate revenue.
Key Facts
- Chancellor Rachel Reeves is expected to announce tax increases in the upcoming Budget.
- The Labour party had promised not to raise VAT, National Insurance, or income tax in their manifesto.
- The Resolution Foundation, an influential think tank, believes tax increases are unavoidable.
- The think tank suggests raising income tax and cutting employee National Insurance contributions.
- Extending the freeze on personal tax thresholds could raise an extra £7.5 billion.
- The Budget aims to address NHS waiting lists, national debt, and the cost of living.
- The government's official forecaster, the Office for Budget Responsibility (OBR), is expected to lower its productivity forecasts.
- The Chancellor is exploring both tax hikes and spending cuts to manage economic risks.
