"As 2025 draws to a close, the Chancellor may feel a sense of optimism going into the New Year. HMRC's latest statistics show tax receipts are up 6.7% on the last 12 months and have now surpassed the £900bn mark for a 12-month period (with this expected to increase as the January filing deadline for self-assessment tax returns spur the nation into parting with their cash)."
"Other significant increases come from National Insurance Contribution (NIC) receipts, up 10.32% (this is before any changes to NIC on salary sacrificed pension payments) and Stamp Duty Land Tax (SDLT) up 20.47% over the last 12 months. For SDLT that is a £2.5bn increase, taking total receipts in the last 12 months to £15.2bn, which is not an insignificant sum in tax takings. It puts into question Kemi Badenoch's party conference pledge to abolish it and where she might otherwise generate such funds for the country."
"Despite the healthy tax take, figures released this week show unemployment rising to 5.1% and Government borrowing in the fiscal year to date was up to £132.3bn (an 8% increase on the same 8-month period in 2024). This will give the Government more to think about especially when it comes to public finance expenditure and increased unemployment will hit tax takings on income tax and NIC going forward."
Tax takings across major UK revenue streams increased, with HMRC recording a 6.7% rise over 12 months and total receipts surpassing £900bn. National Insurance Contributions rose 10.32%, while Stamp Duty Land Tax receipts increased 20.47%, adding £2.5bn to reach £15.2bn. The January self-assessment filing deadline is expected to further boost receipts. Unemployment rose to 5.1% and government borrowing reached £132.3bn, up 8% year-on-year for the eight-month period, creating pressure on public finances. The increases are attributed largely to fiscal drag, reinforced by the freeze on income tax thresholds to April 2031.
Read at London Business News | Londonlovesbusiness.com
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