Which tax rises could the government introduce to fill the black hole in Britain’s finances?

Labour’s recent embarrassing welfare climbing has seen that the government’s benefit reforms were almost completely broken, while the design of the bill fell from £ 5 billion to anything.

Following the U -return, there are increasing questions about how the government will increase the money to fill the black hole in public finances.

Ministers have squeezed significant savings from their departments in the interruptions introduced in the expenditure review last month, so the chancellor has a assembly expectation because it will be forced to raise taxes.

However, Labour’s manifesto promises not to increase taxes on “working people ..

It is said that the chancellor warns that his colleagues are no longer low -hanged fruit to rise billions, so any movement in the autumn budget will be painful for labor.

On Sunday, the Transportation Secretary Heidi Alexander said that the government said not to increase them for “humble income”, as a series of interviews left open to marches in the middle classes that could not exclude tax increases.

When asked if the public should not wait for the rise of taxes in autumn between the unions and the pressure of others for the reserve tax, the ministers would be directed by “justice”.

Here, Independent It takes a look at a number of tax increase in which the government can rely on to collect money and balance books.

Tax Threshold Ice Cream

The Treasury’s movement will probably extend the freezing on the income tax thresholds. This means that wages have increased with inflation, as workers have been dragged to higher tax groups and pay more for years.

A freezing of a higher 45 percent tax rate was one of the recommended options in the note leaked by MS Rayner. However, the government has speculation that the government can expand ice cream in all tax brackets.

On Wednesday, in the PMQs, Sir Keir left the door open for such a movement and refused to exclude it. Increasing VAT, income tax or national insurance excluded a definite answer, while the tax threshold rejected it when it comes to freezing.

It is a hidden tax whose effects are not immediately felt, that is, it is better taken between the general people when compared to enterprises or payment shifts. However, if the freezing is extended to the end of the parliament, it can bring billions of billions for the treasury as the earnings increase.

The ice cream, which is already planned to last until 2028, is expected to drag about two million workers to higher tax groups.

Deying tax

The Labor Party deputies on the left of the party were called to bring a growing leyal tax after the welfare climbing on Tuesday. Rachael Maskell, the rebellion architect forcing the government to shelve the basic columns of the bill, asked the government to increase the richest taxes to pay £ 5 billion.

The vote, which was carried out by Yougov on the eve of the Spring Notification, will enable more than three (77 percent) of people to enrich the government’s richest taxes in public expenditures to improve public financing. However, it is thought that it is very difficult to apply such a tax that may seem to be 2 percent tax on net assets worth £ 10 million, and at the same time, the highest winners of the UK may lead to abandoning the country.

However, Sir Keir Starmer’s Blairite Policy Chief Liz Lloyd has warned the PM against the implementation of a reserve tax between fears about a high net value of individuals from England. For this reason, PM is expected to prevent assembly calls.

Downing Street sources claimed that a reserve tax was not on the table, while the Prime Minister could not exclude PMQs on Wednesday.

Capital gain

The campaigns on the left have long been called for equalization of capital gains with income tax and believed that workers should not pay a higher tax than those who earn money through the appreciation of the value of assets.

The tax paid from the increase in the value of an asset like a house when selling is 24 percent of most things, while income tax may be up to 45 percent.

“These people go to work every day to continue our public service, work in our factories, to direct our economy. Where is the equity there?” Worker MP Andy McDonald said at Times Radio.

Pension

Mrs. Rayner also wanted to restore the retirement allowance for life. The appropriation, which sets a limit on how much savings it can provide for retirement pots before applying a higher tax rate, has been twisted by Tories. The worker initially planned to restore the border, but plans were abandoned before the election.

However, in the midst of the discussions about the cutting of winter fuel payments and then reversing the decision – the government may hesitate to promote other policies that will disrupt retirees.

Corporate tax

Chancellor can also look at the increasing corporate tax for banks, one of the suggestions in the Deputy Prime Minister’s note.

Politically, it is easy to tax on banks because it has a direct impact on voters. However, it is important to state that banks in the UK are already taxed. Normal company tax pays 25 percent and a 3 percent bank additional fee. Furthermore, they pay a bank tax of 0.1 percent of the balance sheets.

Dividend

The Deputy Prime Minister also proposed to increase tax rates for dividends for higher earnings – some of a company’s earnings – higher earnings.

Currently, the income tax is not paid tax on the dividend income that is included in your personal allowance. Every year there is a £ 500 dividend allowance, ie individuals pay tax on any dividend income on it. HMRC data will be completely worth £ 325 million per year.

However, there are concerns that increasing dividend tax rates can prevent people from investing in companies likely to have a clear negative impact on the economy.

Mrs. Rayner also suggested that the inheritance tax reduction is terminated in stocks listed on the smaller AIM stock exchange. The AIM Stock Exchange is a sub -market of the London Stock Exchange. As of April 2026, the qualified purposes at the time of death will be suitable for a 50 percent relief from the inheritance tax – but Ms. Rayner suggested to complete it completely.

Although these changes may disturb the enterprises, it is actually less likely to collect too much money for the treasury – so it is less likely for the chancellor.