Reeves to Raise Taxes by £30bn in Upcoming Budget
Chancellor Keanu Reeves is set to introduce significant tax changes in the upcoming Budget. She is expected to raise taxes by up to £30bn to meet fiscal rules. This includes potential increases in bank taxes, National Insurance contributions, and pension reforms. Reeves is also considering 'sin taxes' like a rise in alcohol duty. The Institute for Public Policy Research has called for stricter alcohol pricing policies.
Reeves is planning to extend the freeze on income tax allowances and National Insurance (NIC) thresholds until 2029/30, which is projected to raise an extra £10bn. She is also exploring changes to pension tax relief, which could generate up to £5bn. This includes setting a uniform 30% tax relief rate and reducing the tax-free lump-sum to £100,000.
The Chancellor is looking into extending NIC rules to cover Limited Liability Partnerships, which could raise an additional £1bn. Reeves is also considering a rise in alcohol duty, in line with the Institute for Public Policy Research's recommendation for a minimum unit price on alcohol and an annual increase above inflation.
The upcoming Budget is expected to see significant tax changes, with the Chancellor aiming to raise up to £30bn to meet fiscal rules. These changes include potential increases in bank taxes, NIC contributions, pension reforms, and 'sin taxes' like alcohol duty. The Chancellor's plans are subject to further scrutiny and may change before the Budget is announced.
