First Labour Budget in decades: What changes could hit your wallet tomorrow?
Labourʼs first Budget in many years comes with much uncertainty about possible tax changes. While income tax hikes are off-table‚ other areas like capital gains and inheritance taxes might face significant updates
Rachel Reeves is set to present Labourʼs first Budget in decades tomorrow afternoon‚ right after PMQs. The new govtʼs financial plans are causing lots of talk about possible tax updates
The party already said it wont touch income tax National Insurance or VAT for working-people but theres more to the story. Income tax brackets might stay frozen till late-20s (which could cost families around £16k in extra taxes)
This Budget is going to be painful
Here are main taxes that might change:
- Capital-gains tax on investments
- Inheritance-tax rules
- Pension-tax benefits
- Employer National-Insurance
- Property-related taxes
- Savings-tax limits
- Local council taxes
The govt already made some big money-saving choices: winter-fuel payments will now go only to benefit-receivers which saves £1.5b per year; private schools will pay 20% VAT starting Jan-2025. Social-care reforms got stopped too – saving £4b by end of decade
For spending Rachel Reeves plans to put £1.5b into NHS for new tech and more appointments. Public-sector workers will get 5.5% pay rise‚ costing £9b yearly. Other plans include free breakfast clubs in primary schools better bus services and first-time buyer help
The money question is big – Labour says it needs £40b to avoid dept cuts. While some funding comes from announced changes like non-dom status updates next spring more tax updates might be needed to make numbers work
