Rachel Reeves will announce Labour’s first Budget in 15 years later this month, leading one of the most highly-anticipated fiscal events in over a decade.
As the chancellor looks to fill the £22bn “black hole” in public spending she announced in late July, speculation has mounted about what measures will be included on 30 October.
Ahead of the event, Ms Reeves is reportedly opting to let current stamp duty exemptions expire by March, ending a tax discount introduced by Liz Truss in 2022. Property market experts have said the measure is likely to severely slow down the housing market.
The chancellor will also honour the £3bn savings in welfare target made by the previous government, with these savings already factored into spending plans according to an OBR report.
During Labour’s first few months in power, ministers have warned that “tough decisions” will be required to balance the books. Sir Keir Starmer has said the event is going to be “painful” but that there is “no other choice given the situation that we’re in.”
This likely means tax rises and spending cuts can be expected, with Reeves reportedly looking to raise £40bn. The government has already come under fire for its decision to cut back winter fuel payments for millions of pensions, sparking a row which has hung over its first 100 days in power.
Both Starmer and Reeves have been accused of potentially breaking the promises contained in the Labour manifesto should such announcements be made.
We’ll be bringing you all the latest updates ahead of the big event on 30 October here, on The Independent’s liveblog.
Tax-free cash withdrawals ‘surge while pension contributions plummet’ as savers panic over Budget rumours
Retirees are rushing to withdraw cash from their pensions ahead of feared cuts to tax-free benefits in the Budget, the boss of one of Britain’s top investment platforms has said.
Savers can typically take 25 per cent of their pension as a lump sum, up to a limit of £268,275, allowing them to avoid paying income tax, but Chancellor Rachel Reeves is reportedly considering a cut to the amount savers can withdraw without triggering a payment to HM Revenue & Customs.
Howard Mustoe18 October 2024 23:00
Workers set for income tax hike as Rachel Reeves ‘to extend freeze on thresholds’
Tom Watling18 October 2024 22:11
ICYMI: How make-or-break Budget has fractured Keir Starmer’s cabinet
Rachel Reeves’ Budget is a make-or-break moment for Sir Keir Starmer’s government, potentially sparking a decade of national renewal – or sowing the seeds of Labour’s downfall.
The prime minister’s poll ratings are at rock bottom after just over 100 days in charge, and the much-hyped “tough choices” to be unveiled on October 30 will likely do little to help boost his appeal.
Archie Mitchell18 October 2024 20:05
Keir Starmer’s cabinet is rebelling – what took them so long?
Led by Angela Rayner, several cabinet ministers have broken ranks on the chancellor’s demand for swingeing budget cuts – and the only winner from this early breakdown of party discipline will be the prime minister, says John Rentoul
John Rentoul18 October 2024 19:00
Keir Starmer’s warning to ministers after cabinet Budget row erupts
Sir Keir Starmer has warned his senior ministers they will have to live with swingeing spending cuts after a cabinet row over the Budget erupted in public.
The prime minister is facing a backlash from Angela Rayner and other members of his top team over cuts to government departments set to be unveiled by the chancellor, Rachel Reeves.
Albert Toth18 October 2024 18:00
Inheritance tax to rise in Budget as Reeves plans to hit well-off
The Treasury is reportedly considering plans to raise Inheritance Tax at the Budget, as part of an attempt to raise £40bn and plug a hole in the public finances. According to the BBC, the chancellor is considering multiple changes to the tax, which is charged at 40 per cent on the property, possessions and money of somebody who has died above a £325,000 threshold.
Millie Cooke18 October 2024 17:05
Budget 2024: Inheritance tax set to rise – here’s what it means for you
Chancellor Rachel Reeves is reportedly planning changes to inheritance tax at the Budget as she looks to raise up to £40bn from tax hikes and spending cuts.
While specifics remain unclear, any changes could significantly affect how much families pay on inherited properties and their financial futures.
Salma Ouaguira18 October 2024 16:00
Stamp duty threshold to drop as Reeves denies extension
The chancellor is reportedly planning to confirm that the heightened stamp duty threshold will drop back to previous levels in March, costing housebuyers up to £2,500 more.
In 2022, the Conservatives under Liz Truss increased the ‘nil rate’ threshold – when stamp duty starts being paid – from £125,000 to £250,000. For first-time buyers, it rose from £300,000 to £425,000.
The approach is expected to raise £1.8 billion a year by 2029-30, but experts have warned the news will cause “chaos” in the property market as buyers rush deals to save money.
Property expert Kirstie Allsopp told Times Radio: “It’s become so complicated that I can no longer tell anyone what they would be paying in stamp duty.”
“It won’t claw back any money. Stamp duty is a dead tax.”
Albert Toth18 October 2024 15:16
Reeves warned inheritance tax hike would punish middle classes as Budget backlash intensifies
Chancellor Rachel Reeves has been warned that her plan to hike inheritance tax risks punishing middle-class homeowners as the backlash against her Budget intensified.
Ms Reeves is considering an increase on the “death tax”, which raises about £7bn for the Treasury each year, despite the fact it is routinely found to be one of voters’ least favourite measures.
Albert Toth18 October 2024 14:30
How DWP rules for disability benefit assessment could change as Reeves’ Budget approaches
Changes to disability benefit assessments are set to come into force soon as Rachel Reeves reportedly pushes ahead with plans to shave £3 billion from the welfare bill ahead of Labour’s upcoming Budget.
Read all about the proposed plans here:
Albert Toth18 October 2024 13:39