Chancellor Rachel Reeves is expected to target wealth and asset-based taxes due to a £50 billion gap in public finances. The National Institute of Economic and Social Research estimates a £41.2 billion deficit. Nigel Green anticipates targeted moves on capital gains tax, dividend income, and other asset taxes. While Labour has pledged not to raise income taxes on working people, economists suggest asset-based taxes may see significant reforms. Experts express diverging views on the inevitability of tax increases, with some proposing alternative ways to strengthen finances without tax hikes.
Nigel Green, CEO of the deVere Group, said: "The question is no longer if taxes will rise in the UK, but how quickly and how sharply." He expects "real, very targeted moves" on capital gains tax, dividend income, inheritance thresholds, portfolios, business assets and property.
Stephen Millard, NIESR's deputy director for macroeconomics, told the BBC that raising one of the UK's major taxes may be unavoidable: "If she wants to raise £40 billion, one of the big taxes is going to have to be increased - even if it breaks Labour's promise about not raising taxes on working people."
When governments feel cornered, they move fast. The people who protect their wealth are the ones who plan early, according to Nigel Green.
A Treasury spokesperson said: "The best way to strengthen public finances is by growing the economy, which is our focus."
Collection
[
|
...
]