Big day: Chancellor Rachel Reeves must deliver her budget
Chancellor Rachel Reeves finally presents her long-awaited Tax and Spending Autumn Budget today.
It is proposed to close a supposed “£22bn black hole” in the UK’s public finances, fix public services and revive economic growth.
Labor’s first budget in 14 years is expected to deliver the biggest tax rises in 30 years to fund additional spending on public services, and Reeves has already signaled a restructuring of the government’s fiscal rules to allow more borrowing to pay for the investment. .
The current six-year freeze on personal tax thresholds is set to be extended, forcing more people into higher income tax brackets, while the Government has also been on the back foot on major imminent changes in inheritance tax and capital gains tax.
Pensions could be in the firing line with a reduction in the tax-free allowance, while Reeves could choose to include pension assets as liable for IHT and force employers to start paying national insurance contributions to them. pensions.
An ongoing row over VAT paid by private schools will come to a head, while the Chancellor could also pull the trigger on a tax raid on the private equity sector. Employers’ national insurance contributions could rise by up to £20 billion.
The budget at a glance: