Overview
- Chancellor Rachel Reeves has signalled tax rises are likely and refused to recommit to promises not to raise income tax, national insurance or VAT.
- The CBI says business taxes are at a 25‑year high and warns against further increases, urging the Chancellor to create larger fiscal headroom even if that means breaching manifesto pledges.
- The Tony Blair Institute advises that any manifesto‑breaching rises should be temporary and paired with pro‑business reforms, with targeted tax cuts once growth strengthens.
- Founder groups report 88% expect higher taxes and say many entrepreneurs are considering leaving the UK, while proposing low‑cost measures like updating EIS/SEIS, scrapping stamp duty on shares and easing talent visas.
- Wealth manager Rathbones cautions against a wealth tax or cuts to higher‑rate pension relief, warning of potential capital flight and calling for a stable, investment‑friendly policy environment.