Overview
- Rachel Reeves signalled taxes are likely to rise despite Labour’s promise not to increase income tax, VAT or workers’ national insurance, saying the country faces hard choices.
- The CBI urged Reeves to raise taxes on working people to create “real fiscal headroom” while avoiding further business tax increases, fast‑tracking planning and infrastructure, and scrapping a proposed 6% tax on international student incomes.
- NIESR recommended a £30 billion buffer against fiscal rules, up from the £10 billion headroom at the last Budget.
- The Tony Blair Institute said any major levy, including a pledge‑breaching rise in income tax or VAT, should be temporary and later reversed with targeted tax cuts as growth improves.
- TBI also pressed for pro‑growth measures such as retaining a five‑year skilled‑worker settlement route, expanding the global talent visa, creating a new tech excellence visa and a permanent key worker visa, as business groups warn confidence was hurt by last year’s employer NI rise.