"Every indication points to a Budget built on a patchwork of tax hikes that raise the overall burden without altering some of the headline rates."
"A freeze that runs for years becomes a tax rise in everything but name. People feel it the moment they drift into higher bands, lose allowances or face limits that no longer reflect real-world prices."
"The UK is edging toward the point where the effective burden crosses the line of tolerance."
The Chancellor faces a substantial fiscal shortfall that requires major measures to restore sustainability while constrained by a political pledge to leave income tax, National Insurance and VAT unchanged. Markets expect reliance on adjustable tools: extended freezes of thresholds, tightened reliefs, new bases for existing taxes, and new obligations on income streams previously outside National Insurance. Income-tax threshold freezes cause fiscal drag, pulling millions into higher rates and generating billions if extended. Inheritance tax nil-rate band freezes push more estates into liability as property prices rise. Proposed property-tax measures include expanded top council-tax bands, restricting capital-gains exemptions on high-value homes, revisiting second-home rules, and possibly bringing rental income into National Insurance under digital reporting.
Read at London Business News | Londonlovesbusiness.com
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