UK Chancellor Rachel Reeves faces mounting pressure ahead of her Autumn Budget on November 26, with reports suggesting high earners could face tax increases of up to £8,309. The proposals come as the government attempts to address a £30 billion financial shortfall.
Individuals earning over £75,000 could pay an additional £495 annually under a proposed dual tax strategy. Those earning above £100,000 would see increases of £998, while earners above £125,000 could face an extra £1,745 per year. The plan reportedly combines a 2p income tax rise with a 2p National Insurance reduction for those earning below £50,000.
Manifesto commitments under strain
The Confederation of British Industry has urged the Treasury to deviate from Labour's manifesto pledges. Rain Newton-Smith, CBI Chief Executive, said the manifesto commitments are no longer economically viable. Tax expert Shaun Moore from Quilter noted that the strategy «allows the Chancellor to raise significant revenue while protecting the majority of working households and maintaining the sense that manifesto commitments are being 'bent' rather than broken».
Reeves told The Telegraph: «As I take my decisions on both tax and spend, I will do what is necessary to protect families from high inflation and interest rates, to protect our public services from a return to austerity and to ensure that the economy that we hand down to future generations is secure with debt under control.»
Market turbulence follows speech
Financial markets reacted sharply to Reeves' recent "context" speech, with the FTSE falling 57 points and the pound hitting a seven-month low. The speech, delivered just three weeks before the budget, provided broad context but few specifics on planned tax policies.
Council tax and motoring changes
Council tax bills could double for the top two bands (G and H), rising from £3,800 to £7,600 for band G and £4,560 to £9,120 for band H. Shadow Housing Secretary James Cleverly said in the Express: «Despite promising to freeze council tax, Labour are presiding over soaring bills across England, piling more and more costs on families. [...] On top of Labour's plans for a £9bn hike in council tax bills for everyone, now many second homeowners could face the grim prospect of quadruple bills because Rachel Reeves doesn't have the backbone to get spending under control.»
The Chancellor is also considering a pay-per-mile tax system for electric vehicle owners at 3p per mile, potentially raising £300 annually for drivers covering 10,000 miles. The measure could be introduced in 2028.
Business pressure on pensions
More than 250 British business leaders have urged Reeves to mandate pension funds allocate at least 25% of assets to UK companies. They claim this could unlock £95 billion in additional private investment, reversing a decline in UK equity holdings from 53% in 1997 to just 4% currently.
Note: This article was created with Artificial Intelligence (AI).
