Reeves warned she will have to break manifesto commitment on tax to deal with economic black hole
Rachel Reeves said that Labour had to break the manifesto manifesto commitment after saying that they were “dealing” with smaller taxes such as a mansion tax and gambling tax.
The warning was ruled by Economist, former Treasury Minister and former Goldman Sachs President Lord Jim O’Neill.
He said Independent: “I don’t think it will give too much fruit to deal with smaller taxes anymore.”
Instead, Chancellor was told that if he wanted to protect his expenditure plans and financial rules on borrowing, he would probably have to increase his income tax, VAT or employee national insurance.
The National Institute of Economic and Social Research (NIESR) predicted that Ms. Reeves would face 41.2 billion black holes in her next budget this autumn this autumn.
Senior economists, including Andrew Community, a former member of the Monetary Policy Committee of the Bank of the UK, who recently resigned as NIESR president, claimed that Britain may need to go to the International Monetary Fund (IMF) for bail.
Although the Treasury rejects speculation, the options for Ms. Reeves’ economic gap filling seems to be diminishing.
According to the Institute of Financial Research (IFS), he kept about £ 10 billion in the earlier this year’s expenditure, but the economic problems caused by wars and Donald Trump’s tariffs left the British economy vulnerable.
In addition, an increase in gilded markets meant that since 1998 was the highest cost of long -term borrowing. 30 -year -old gilts hit 5.64 percent –Liz Truss is much higher than 4.8 percent to see that the office is forced from the office.
A series of options were proposed with a mansion tax call – A kind of reserve tax targeting expensive properties.
However, NiesR Deputy Director Professor Stephen Millard warned that taking into account the three major taxes of Ms. Reeves to address the major gap in public expenditures. – Income tax, VAT and national insurance.
He said: “Given the gap we really think, he should go back to the manifesto hostage, raise one of the three big taxes. I think this is the only way to produce enough money.
“Permanent expenditures need to be financed by permanent taxation. This is a matter. If the increases in expenditures are expected to be temporary, they need to be financed by borrowing.”
It is an assessment shared by Isaac Delestre, a tax expert in IFS.
He said: “If you want to collect £ 40 billion, it would be difficult to do this without touching big taxes.”
Ms. Reeves also said that the fourth largest tax is committed to freezing – Corporate Tax for Businesses – Options such as fuel tax are less attractive than it collects less money with a decrease in gasoline and diesel cars.
He claimed that the other option reduced welfare or expenditure cuts, but he said that political problems within the Labor Party made it even more difficult.
The authority added: “Given the newly released the expenditure examination, it does not seem possible to reduce expenditures, so they probably won’t reopen it right away.”
Recently, when we look at the rebellions against prosperity cuts, he said: “Other option to reduce expenditures, this is out of the department expenditures that go beyond the expenditure examination, but this is such as prosperity. And so far, some seems to have achieved great success in trying to reduce the welfare on winter fuel payments or on the benefits of blocking.
Accordingly TimesThe Konak Tax Plan means that the basic rate of taxpayers paying 24 percent of any earnings of higher rates of taxpayers’ houses will be hit with a 18 percent tax.
The tax policy supporting the concept of higher valuable property owners who paid more payment calculated that a new group of property over 1.5 million pounds can increase £ 3.6 billion.
This calculation was working on a series of increases that seemed to have gone through the current situation up to the lowest band A to 12 times up to twice the lowest band A for the most expensive features.
“Creating a new percentage tax above the current council tax increases more significant amounts. A tax of 0.5% of £ 2 million in all property value rises, approximately 1 billion pounds and property owners who pay an average of £ 90,000 more each year.”
Low -income people in high -valuable properties listed a number of problems that could not pay; Policy suppressing the value of houses; The landlords who have cost the tenants costs, people who deterred to improve their landlords; And since 1991, Council tax tapes are not re -valued, the need for regular values.
“After looking at the wholesale reform, the balance varies: all the council tax, job rates and stamp tax change with land value tax. I think such a reform will increase against growth and home construction, but it seems less attractive as a pure income raizer in a miniature version of such a tax.”
Meanwhile, former Principal Torsten Bell was now proposed a host national insurance contribution plan by the Solution Foundation Thinktank, a Treasury Minister.
It can increase income of £ 2 billion, but it can be transferred to tenants or can buy hosts to sell in a market that is already under pressure.
After being prepared by the Institute of Public Policy Research (IPPR), the gambling tax supported by former Prime Minister Gordon Brown may increase an extra per year an extra per year.
Among the other options will bring between £ 7 billion to £ 9 billion during the period between the freezing income tax thresholds by two years to 2030.
