The Budget date has been set for Wednesday, 30 October, as Chancellor Rachel Reeves outlines plans to address a £20bn deficit.
This will be the first opportunity to see Labour’s tax policy direction under the new administration. Reeves has pledged not to raise income tax, national insurance, or VAT to protect “working people”.
However, a significant shortfall revealed after a government audit, a confirmed 5.5% public-sector pay increase, and a 22% backdated rise for hospital doctors, mean tax increases and budget cuts are expected. Speculation suggests capital gains tax (CGT) may see changes, potentially aligning CGT rates with income tax rates.
The year 2022/23 saw record CGT receipts of £16.92bn, a fourfold increase over the past decade, with over 400,000 taxpayers affected. The Chancellor might also consider adjusting the pensions tax by removing the 20% relief for higher-rate taxpayers. Final figures will be released on Thursday, including a breakdown of gains.
The Chancellor said it would be:
“A Budget to fix the foundations of our economy.
“It will be a Budget built on the principles that this new government was elected on.”
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