A new poll has revealed strong public opposition to several of Labour’s tax policies during their first year in government, with one policy standing out as especially unpopular: charging inheritance tax on pensions.
Thousands of taxpayers gave their verdict on recent changes, showing mixed feelings. One of the most divisive measures has been the increase in employers’ National Insurance contributions in April 2025. While 41% of respondents opposed the rise, 24% surprisingly supported it. It remains to be seen whether support would hold if employee contributions were increased.
In contrast, abolishing non-dom status and switching to a residence-based system, where worldwide income is taxed after 15 years of UK residency, received broad support, with 44% of the public approving the change.
The imposition of VAT on private school fees has been the second most popular move, with fewer than one in four opposing it. The policy is expected to raise £640 million in 2027/28, rising to £1.34 billion the following year and £1.46bn in 2029/30, figures the Treasury says are usually highly reliable.
Some parents, however, have withdrawn their children from private schools due to rising costs, with more pupils expected to move into the state sector. A High Court challenge by parents of children at SEND and religious schools, claiming discrimination, was recently rejected.
With the date of the next Budget still unconfirmed, speculation is mounting that capital gains tax could be the next area under review.
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