Rachel Reeves will announce Labour’s first Budget since coming into power on 30 October, leading one of the most anticipated fiscal events in over two decades.
Ahead of her announcement, local mayors have reportedly launched last-minute lobbying talks with the Treasury to prevent cuts to their transport budgets. The chancellor is reportedly looking to skim funds from the pots to help fill the £22bn public spending shortfall she revealed in July.
The reports come after cabinet ministers are understood to have written to the prime minister, going over Ms Reeves’ head to urge him to reconsider cuts to their departments.
It is thought that complaints came from the transport secretary, Louise Haigh, deputy PM and housing secretary, Angela Rayner, and justice secretary Shabana Mahmood.
Ms Reeves is also reportedly exploring increasing business rates on online tech giants in what has been dubbed an ‘Amazon tax’. The measure would be designed to help ailing high-street stores as online companies continue to dominate the market.
We’ll be bringing you all the latest updates ahead of the big event on 30 October here, on The Independent’s liveblog.
Streeting refuses to rule out income tax threshold freeze
When is the 2024 Budget and what might be in it?
Government will keep manifesto pledges, says Starmer
Wednesday 23 October 2024 16:00 , Albert Toth
Capital Gains Tax (CGT) is paid on the profit made when an asset which has increased in value is sold. It is applied to things like the sale of personal possessions worth more than £6,000 (apart from a car), property that’s not the seller’s main home, shares and business assets.
It is charged at 10 or 18 percent for basic rate taxpayers, and 20 or 24 for higher or additional rate earners. There is a tax-free allowance of £3,000.
There are several ways CGT could be changed. In the run-up to the election, the Lib Dems and Greens both said they would rethink the tax bands to be more similar to income tax, raising an estimated £5.2bn a year.
Wednesday 23 October 2024 14:44 , David Maddox
Fears have been raised that Wes Streeting’s inflation-busting funding deal for the NHS will not be enough for him to pay for the reforms he wants to drive through.
Sources have told The Independent that the Department for Health and Social Care is set to get about 4 per cent – between £7bn and £8bn – as Mr Streeting confirmed that he has mostly agreed his settlement with chancellor Rachel Reeves. Inflation is currently running at 1.7 per cent.
Wes Streeting warned inflation busting NHS Budget deal will not be enough
Wednesday 23 October 2024 13:45 , Albert Toth
The chancellor is reportedly considering a new ‘Amazon tax’ that would see business rates paid my online tech giants increased.
Industry sources understand that a consultation will be launched after Ms Reeves announces the Budget on 30 October. This means the plans may get a mention.
It comes after Labour wrote in its manifesto that it would reform the business rates system to “level the playing field between the high street and online giants.”
The manifesto added that the current system “disincentivises investment, creates uncertainty and places an undue burden on our high streets.”
Wednesday 23 October 2024 11:49 , Albert Toth
Local mayors have reportedly engaged in a last-minute lobbying campaign to persuade the chancellor to soften potentially hundreds of millions in transport cuts.
There are fears bus, tube and tram projects in all 12 combined authorities represented by metro mayors could be at risk of underfunding. Following the local elections in May, 11 of these posts are held by Labour mayors.
“The mayors have been pushing back on the idea that their sustainable budgets should be cut, not least because many of them thought the money was guaranteed until 2027,” one official told The Guardian.
With the Budget only a week away, Ms Reeves will have already submitted her proposals to the Office for Budget Responsibility, making any last-minute changes unlikely.
The chancellor already made a substantial cut to rail infrastructure projects in July, when she announced the cancellation of the Tory-era Restoring Your Railways project alongside unveiling the £22bn shortfall in public spending:
The 36 rail projects at risk of being scrapped to plug Labour’s £22bn black hole
Wednesday 23 October 2024 10:18 , Howard Mustoe
Ahead of the Budget on 30 October, there has been fevered speculation about changes to pension savers’ tax allowances and other perks.
Reports that pensioners could have tax breaks cut or axed led to savers withdrawing chunks of their retirement pots ahead of Chancellor Rachel Reeves’s big announcement.
What should I do with my savings ahead of the Budget?
Wednesday 23 October 2024 09:09 , Albert Toth
The UK economy will grow faster than previously thought as lower inflation and borrowing costs lead to a boost in business activity, a boost for chancellor Rachel Reeves as she aims to fix the nation’s finances.
The update from the International Monetary Fund also suggested that the fight against inflation and the cost of living crisis had “largely been won”.
UK economy to grow faster than thought in pre-Budget boost for Reeves
Wednesday 23 October 2024 07:36 , Albert Toth
Chancellor Rachel Reeves has said she has a “good relationship” with her predecessor Jeremy Hunt.
“I may not be particularly impressed with the state of the public finances that he left me, but I do recognise that after Kwasi Kwarteng, he had a tough job to do as well,” she told BBC Radio 5 listeners.
She adds that if there were one person she could “pick up the phone to now” it would be Alistair Darling, who delivered Labour’s last budget in 2010.
The veteran politician died last year at the age of 70. He served in cabinet for 13 years under both Tony Blair and Gordon Brown, working as chancellor during the 2008 financial crisis.
“I hope that he would be proud of what I’m doing as the next Labour chancellor after him,” Ms Reeves said.
Wednesday 23 October 2024 07:00 , Alexander Butler
How make-or-break Budget has fractured Keir Starmer’s cabinet
Wednesday 23 October 2024 06:00 , Alexander Butler
Inheritance tax set to rise – here’s what it means for you
Wednesday 23 October 2024 04:00 , Alexander Butler
Public sector pay rises hand Reeves a £6.7bn headache ahead of Budget
Wednesday 23 October 2024 02:00 , Alexander Butler
Brits are already paying 10 per cent more on inheritance tax before Reeves’ budget
Wednesday 23 October 2024 00:01 , Alexander Butler
Wes Streeting warned inflation busting NHS Budget deal will not be enough
Tuesday 22 October 2024 22:00 , Simon Calder
Air Passenger Duty may rise in Reeves’s Budget – could the ‘Inverness Immunity’ end?
Tuesday 22 October 2024 20:00 , Alexander Butler
Tax on high earners ruled out as Rachel Reeves looks to plug £40bn Budget black hole
Tuesday 22 October 2024 18:00 , Alexander Butler
Tuesday 22 October 2024 16:00 , Kate Devlin
Britons are already paying more inheritance tax as Rachel Reeves looks to squeeze millions more from the levy, official figures show.
Payments swelled the Treasury’s coffers by £4.3bn in the six months since April, £400m more than in the same period in the previous financial year and a rise of 10 per cent, new data from HM Revenue and Customs shows.
Brits are already paying 10 per cent more on inheritance tax before Reeves’ budget
Tuesday 22 October 2024 15:00 , Albert Toth
Government spending so far this financial year was £11.5 billion more than forecast by the OBR, points out The Resolution Foundation, which tallies with Rachel Reeves’ claim of a £22 billion “black hole” in the public finances.
The foundation’s senior economist Cara Pacitti said: “Six months into the financial year, Britain is borrowing £6.7 billion more than expected at the time of the Budget in March.
“This reflects central government spending which is £11.5 billion higher than anticipated, largely due to public sector pay rises and higher running costs.
“Today’s data highlights the scale of the public finances challenges facing the Chancellor as she grapples with overspending today, the need to avoid austerity in the future, and having to fund extra public service spending through tax rises.”
Tuesday 22 October 2024 14:05 , Archie Mitchell
The IMF has said UK gross domestic product (GDP) is due to grow by 1.1 per cent in 2024 – a major uplift from the 0.7 per cent growth forecast from July.
The UK economy is then expected to grow by 1.5 per cent in 2025, with the IMF maintaining its prediction from earlier in the year.
The IMF report also found that UK inflation for 2024 is set to be slightly higher than expected at 2.6 per cent, having previously pointed towards a 2.5 per cent reading.
It likewise slightly increased its inflation projection for 2025 to 2.1per cent from 2per cent in its previous outlook.
Unemployment is also set to be slightly worse than previously expected by the IMF, according to the latest report.
It said the UK unemployment rate is set to have been 4.3per cent for 2024 as a whole, compared with a previous 4.2per cent estimate.
Tuesday 22 October 2024 13:55 , Archie Mitchell
Rachel Reeves has welcomed an upgrade to the UK’s economic growth forecasts from the International Monetary Fund (IMF) as it said Britain’s battle against inflation has “largely been won”.
The chancellor stressed that there is “more work to do”, but added “it is welcome that the IMF have upgraded our growth forecast for this year”.
Ahead of her first financial statement as chancellor on Wednesday, Ms Reeves said: “The Budget next week will be about fixing the foundations to deliver change, so we can protect working people, fix the NHS and rebuild Britain.”
Tuesday 22 October 2024 13:00 , Albert Toth
Capital Gains Tax (CGT) is paid on the profit made when an asset which has increased in value is sold. It is applied to things like the sale of personal possessions worth more than £6,000 (apart from a car), property that’s not the seller’s main home, shares and business assets.
It is charged at 10 or 18 percent for basic rate taxpayers, and 20 or 24 for higher or additional rate earners. There is a tax-free allowance of £3,000.
There are several ways CGT could be changed. In the run-up to the election, the Lib Dems and Greens both said they would rethink the tax bands to be more similar to income tax, raising an estimated £5.2bn a year.
Tuesday 22 October 2024 12:00 , David Maddox
Sir Keir Starmer’s government was hit by another day of Budget confusion after Labour was bounced into conceding that individuals earning above £100,000 are still “working people”.
On a day when the prime minister had hoped to get a grip on the political agenda with the launch of a major consultation over the future of the NHS, Sir Keir faced another series of rows and speculation over whether Rachel Reeves was planning further taxes on the rich.
Tax on high earners ruled out as Rachel Reeves looks to plug £40bn Budget black hole
Tuesday 22 October 2024 10:40 , Albert Toth
Treasury Chief Secretary Darren Jones said the state of the public finances meant there would be “difficult decisions” in the October 30 Budget.
He said: “We have inherited a £22 billion black hole in the country’s public finances, including no plan to fund pay deals for millions of public sector workers.
“Strikes cost at least £3 billion last year, so it was the right thing to do to end those damaging disputes.
“Resolving this black hole at the Budget next week will require difficult decisions to fix the foundations of our economy and begin delivering on the promise of change.”
Tuesday 22 October 2024 08:00 , Jabed Ahmed
Pension tax relief is a reduction of the amount of tax paid on private pensions. It helps workers save for retirement by boosting their pension pots.
The amount of tax relief a person is granted is based on their income tax. It will effectively cancel out tax on pension contributions up to a maximum of £60,000.
After this, contributions will be taxed at either 20, 40, or 45 per cent, depending on which income tax rate the worker falls into.
However, the chancellor is thought to be considering a flat 30 per cent pension tax relief rate. This would mean that higher earners would effectively pay 10 per cent in tax, while those on the additional rate would pay 15.
The measure would raise around £3 billion a year, with 7 million earners paying more tax. But it would be better news for basic rate earners, who would actually begin to receive a 10 per cent boost to their pension contributions.
Evaluating the idea last year, the IFS said it would “redistribute the burden of taxation from the bottom 80 per cent to the top 20 per cent of earners.”
Tuesday 22 October 2024 06:00 , Jabed Ahmed
The UK needs its own version of Israel’s Iron Dome missile defence system to protect it from Russian aggression, former ministers have said.
Former defence secretary Penny Mordaunt told The I: “This is a significant UK capability gap we must plug at the earliest opportunity. The forthcoming Budget must enable early work to be done on the alliance’s key needs and let the US and other partners know we mean business.”
Tuesday 22 October 2024 04:00 , Jabed Ahmed
Speculation has mounted in the subsequent months, with an increase in employer NICs now looking likely. The measure has caused strong political debate, focused on whether it would break Labour’s manifesto pledge to not raise taxes on “working people.”
Ministers and Treasury officials have indicated the government’s position is that the measure would not break their manifesto pledge. Labour has not confirmed that an employer NIC hike will be included in the Budget, but has refused to rule the measure out.
Meanwhile, Institute for Fiscal Studies director Paul Johnson has argued it would be a “straightforward breach.”
The tax expert adds that in the extreme case that an increase of one pence per pound in employer NICs was passed on to employees in the form of lower wages, the measure would only net £4.5 billion a year. He adds that the end figure would probably be a little higher than this, but much less than a previous HMRC estimate of £8.5 billion.
Tuesday 22 October 2024 02:00 , Jabed Ahmed
Martin Lewis has issued a warning over a new crackdown on buy now, pay later products.
The money expert has cautioned consumers it is a case of buy now, get protected later.
Ministers have announced that millions of shoppers are to be protected by new rules for BNPL, as they are known.
Mr Lewis welcomed the change saying: “Buy Now, Pay Later is now ubiquitous at online checkouts, so the fact it’s never been regulated is a travesty I and others have long campaigned on.
“The last chancellor promised to regulate, then the tumbleweed rolled as he went silent, so I am delighted the new government has quickly restarted the process.”
Monday 21 October 2024 23:59 , Jabed Ahmed
Rachel Reeves should increase capital gains tax (CGT) at Labour’s upcoming Budget, a group of millionaire business owners have urged, estimating the measure would raise £14bn a year.
In a report by the IPPR think-tank, analysts have consulted with wealthy entrepreneurs who say higher CGT would not have stopped them from making investments in the UK.
The group has called for CGT to be aligned with income tax, arguing that fears such a move would lead wealthy individuals to leave the country in response are unfounded. Recent HMRC analysis found that a 10 per cent increase to the measure would actually cost the exchequer £2bn after behavioural impacts.
Monday 21 October 2024 23:00 , Jabed Ahmed
How Labour could push through ‘stealth’ income tax rise at the Budget
Monday 21 October 2024 22:00 , Jabed Ahmed
There have been rumours Labour could tweak the fiscal rules the Government uses to constrain its own spending and tax decisions.
Chief among those under consideration for change is the period over which the Government aims to see national debt falling as a percentage of the UK’s overall economic output.
Relaxing this rule to a longer period than the current five-year target, or removing spending by certain public organisations from the total, could allow the Chancellor to borrow more cash to invest in major infrastructure projects such as railways, roads, hospitals and new prisons.
Monday 21 October 2024 21:00 , Jabed Ahmed
Public services including the NHS and local councils are struggling across the UK, as they grapple with an ageing population, backlogs caused by the pandemic, and the aftermath of the coalition-era austerity programme.
Labour has brokered a pay deal for a swathe of public servants after several years of industrial action, a spending commitment worth £9 billion by some estimates.
Ms Reeves has also claimed the previous Conservative government did not account for the costs of some of its promises, which now need to be met or scaled back.
These commitments, alongside keeping the Government’s ongoing costs “standing still”, made up the so-called £22 billion “black hole” in the public finances which Labour said it needs to fill.
However, Ms Reeves is said to have since identified a far larger £40 billion funding gap which she will seek to plug to protect key departments from real-terms cuts and put the economy on a firmer footing.
Monday 21 October 2024 20:00 , Jabed Ahmed
The wider benefits of scrapping the two-child limit such as the future earnings potential of young people who avoid poverty as a result are being ignored, a think tank has said.
Prime minister Sir Keir Starmer has faced pressure, including from some of his own Labour MPs, since being elected in July to scrap the controversial Conservative policy but has insisted he cannot do so in the current economic climate.
The New Economics Foundation (NEF) said its UK-wide analysis suggests that retaining both the two-child limit and the benefit cap – which a number of campaigners have said should also be axed – could see almost half (49.4%) of families with three or more children living in relative poverty after housing costs by the end of this Parliament five years from now.
Scrapping both from April 2025 could cost the Government £2.5 billion a year, rising to £3.5 billion by 2029/30, the organisation said.
Much of these costs are taken up by the two-child limit at £1.9 billion and £2.6 billion respectively, the NEF said, but it argued this would be “significantly offset by short, medium and longer-term economic gains”.
Monday 21 October 2024 19:00 , Jabed Ahmed
Labour were right to break their promise on taxes – we should all be paying more
Monday 21 October 2024 18:00 , Jabed Ahmed
Chancellor Rachel Reeves will deliver Labour’s first Budget on Wednesday 30 October.
Each year, the chancellor of the exchequer – who is in charge of the government’s finances – makes a Budget statement to MPs.
The speech outlines the government’s plans for spending and taxes.
The Budget speech usually starts around 12:30pm and lasts about an hour. The Independent will be bringing you all the latest updates on the big day.
Ms Reeves may be considering pushing the freeze beyond its current expiry date of 2028 in a move that could raise £7 billion, according to the Financial Times.
Other measures reported to be under consideration include increasing employers’ national insurance contributions, raising fuel duty for the first time since 2010, changes to rules on inheritance tax and stamp duty, and a levy on e-cigarettes, according to reports across the media.
The Treasury has so far declined to comment on Budget speculation.
Monday 21 October 2024 17:31 , Jabed Ahmed
Wes Streeting has refused to rule out that the Government will freeze income tax thresholds in the upcoming Budget.
Mr Streeting had previously voted against the measure in opposition while Rishi Sunak was prime minister.
Speaking on Sunday Morning With Trevor Phillips on Sky News, Mr Streeting said: “I’m not going to speculate on what the Chancellor might do in the Budget.
“If you’re asking me whether I would vote against anything in the Chancellor’s Budget? The answer is no, of course I’m not going to do that.”
He went on to say: “This country is paying a heavy price for Conservative failure, and we’re going to have to make some big and difficult choices in this Budget to make sure we fix the foundations of the economy and we don’t end up back here.”
He later added: “What we’re not going to do is duck the difficult decisions, have Government by gimmick, short-term sticking plasters, because that is exactly how we ended up in this situation.”
Monday 21 October 2024 17:01 , Jabed Ahmed
Wes Streeting warned inflation busting NHS Budget deal will not be enough
Monday 21 October 2024 16:31 , Jabed Ahmed
In its election manifesto, Labour said it was committed to reforming the current business rates system “so we can raise the same revenue but in a fairer way”.
What this means has not been spelt out by the party, but it said the new system will be designed to “level the playing field between the high street and online giants, better incentivise investment, tackle empty properties and support entrepreneurship”.
It’s thought this could take the form of an immediate cut to the rates, while also closing loopholes which allow some firms to avoid tax. This will come as welcome news to smaller business owners, but Labour will be careful to ensure their reform maintains a monetary net zero.
Exchequer secretary James Murray MP confirmed this at a Labour conference fringe event hosted by the British Retail Consortium, saying: “It’s within the current envelope. It’s all about raising the same amount of money overall, that’s the commitment.”
Monday 21 October 2024 16:01 , Jabed Ahmed
Fuel duties, or taxes, apply to purchases of petrol, diesel and a variety of other fuels used both for vehicles and domestic heating.
The level of fuel duty depends on the type of fuel used, with a litre of petrol, diesel, biodiesel and bioethanol attracting a fuel duty of 52.95p. It was cut by 5p by the Conservatives in 2022, after being frozen at 57.95p since 2011.
It represents a significant source of revenue for the government, expected to raise £24.7 billion in 2023-24, according to the Office for Budget Responsibility – equivalent to 2.2 per cent of all receipts.
Scrapping the 5p cut would raise the government an estimated £2bn. However, doing so would not automatically force fuel retailers to bring down their costs, likely meaning higher fees for motorists, at least in the short term.
Monday 21 October 2024 15:43 , Jabed Ahmed
UK interest rates will drop to 2.75 per cent, Goldman Sachs predicts
Monday 21 October 2024 15:31 , Jabed Ahmed
UK banks paid a record amount in taxes last year after generating bumper profits, while the gap between taxation on the City and other global financial hubs widens, figures show.
The UK banking sector’s total tax contribution was £44.8 billion for the financial year to the end of March, according to analysis produced by PwC for trade group UK Finance.
With the government set to announce its Budget next week, there has been growing speculation over possible tax changes to help cover shortfalls in public finances.
Gary Greenwood, a research analyst for Shore Capital Markets, said the Government would need to “think long and hard” before potentially increasing taxes for banks.
“While taxing banks more may not get much pushback from the public, they already carry a relatively high tax burden in an international context and we feel that it would also be a damaging move when the Government is seeking to drive increased economic growth,” he said.
Monday 21 October 2024 15:02 , Jabed Ahmed
Labour has made no secret of its ambition to reduce the government’s welfare spending bill, so Ms Reeves will likely take the Budget as her opportunity to do so.
Speaking at Labour’s party conference, the prime minister said: “We will get the welfare bill down because we will tackle long-term sickness and support people back to work.”
What has been confirmed is a crackdown on benefit fraud, which looks to save £1.6bn over the next five years. Also possible is the mooted reform to personal independence payments (PIP) to provide cash vouchers or expenses rather than regular payments – a Conservative-era policy that Labour has refused to rule out.
Monday 21 October 2024 14:45 , Jabed Ahmed
Threat to high earners as Rachel Reeves looks to plug £40bn Budget black hole
Monday 21 October 2024 14:01 , Jabed Ahmed
Inheritance tax is a levy on the estate of someone who has died. This is their property, money and possessions. Crucially, it is not paid if the value of these things is below £325,000.
The tax rate is 40 per cent, but it’s only charged on the part of the estate that’s above the threshold. In 2023/24, only 5 per cent of deaths generated an inheritance tax bill, raising around £7 billion.
However, the IFS writes that the tax measure “is littered with special exemptions”. These include a business relief, the ability to pass on agricultural land tax-free, and the tax-free passing on of pension pots.
The economic think tank says that ending these measures alone would raise £4.8bn a year by 2029.
Monday 21 October 2024 13:02 , Jabed Ahmed
Pension tax relief is a reduction of the amount of tax paid on private pensions. It helps workers save for retirement by boosting their pension pots.
The amount of tax relief a person is granted is based on their income tax. It will effectively cancel out tax on pension contributions up to a maximum of £60,000.
After this, contributions will be taxed at either 20, 40, or 45 per cent, depending on which income tax rate the worker falls into.
However, the chancellor is thought to be considering a flat 30 per cent pension tax relief rate. This would mean that higher earners would effectively pay 10 per cent in tax, while those on the additional rate would pay 15.
The measure would raise around £3 billion a year, with 7 million earners paying more tax. But it would be better news for basic rate earners, who would actually begin to receive a 10 per cent boost to their pension contributions.
Evaluating the idea last year, the IFS said it would “redistribute the burden of taxation from the bottom 80 per cent to the top 20 per cent of earners.”
Monday 21 October 2024 12:29 , Jabed Ahmed
The UK needs its own version of Israel’s Iron Dome missile defence system to protect it from Russian aggression, former ministers have said.
Former defence secretary Penny Mordaunt told The I: “This is a significant UK capability gap we must plug at the earliest opportunity. The forthcoming Budget must enable early work to be done on the alliance’s key needs and let the US and other partners know we mean business.”
Monday 21 October 2024 12:01 , Jabed Ahmed
Capital Gains Tax (CGT) is paid on the profit made when an asset which has increased in value is sold. It is applied to things like the sale of personal possessions worth more than £6,000 (apart from a car), property that’s not the seller’s main home, shares and business assets.
It is charged at 10 or 18 percent for basic rate taxpayers, and 20 or 24 for higher or additional rate earners. There is a tax-free allowance of £3,000.
There are several ways CGT could be changed. In the run-up to the election, the Lib Dems and Greens both said they would rethink the tax bands to be more similar to income tax, raising an estimated £5.2bn a year.
Monday 21 October 2024 11:13 , Jabed Ahmed
Speculation has mounted in the subsequent months, with an increase in employer NICs now looking likely. The measure has caused strong political debate, focused on whether it would break Labour’s manifesto pledge to not raise taxes on “working people.”
Ministers and Treasury officials have indicated the government’s position is that the measure would not break their manifesto pledge. Labour has not confirmed that an employer NIC hike will be included in the Budget, but has refused to rule the measure out.
Meanwhile, Institute for Fiscal Studies director Paul Johnson has argued it would be a “straightforward breach.”
The tax expert adds that in the extreme case that an increase of one pence per pound in employer NICs was passed on to employees in the form of lower wages, the measure would only net £4.5 billion a year. He adds that the end figure would probably be a little higher than this, but much less than a previous HMRC estimate of £8.5 billion.
Monday 21 October 2024 10:14 , Jabed Ahmed
Martin Lewis has issued a warning over a new crackdown on buy now, pay later products.
The money expert has cautioned consumers it is a case of buy now, get protected later.
Ministers have announced that millions of shoppers are to be protected by new rules for BNPL, as they are known.
Mr Lewis welcomed the change saying: “Buy Now, Pay Later is now ubiquitous at online checkouts, so the fact it’s never been regulated is a travesty I and others have long campaigned on.
“The last chancellor promised to regulate, then the tumbleweed rolled as he went silent, so I am delighted the new government has quickly restarted the process.”
Monday 21 October 2024 09:15 , Jabed Ahmed
Rachel Reeves should increase capital gains tax (CGT) at Labour’s upcoming Budget, a group of millionaire business owners have urged, estimating the measure would raise £14bn a year.
In a report by the IPPR think-tank, analysts have consulted with wealthy entrepreneurs who say higher CGT would not have stopped them from making investments in the UK.
The group has called for CGT to be aligned with income tax, arguing that fears such a move would lead wealthy individuals to leave the country in response are unfounded. Recent HMRC analysis found that a 10 per cent increase to the measure would actually cost the exchequer £2bn after behavioural impacts.
Monday 21 October 2024 08:46 , Jabed Ahmed