Overview

• The IFS warns the Treasury against “half-baked fixes” as officials weigh how to close a roughly £20–50bn gap before the 26 November Budget.
• Options costed by the think tank include ending capital gains tax relief at death (about £2.3bn in 2029–30), doubling council tax rates in bands G and H (around £4.4bn), and abolishing the inheritance tax residence nil‑rate band (about £6bn).
• A credibly one‑off wealth levy could be efficient in principle, the IFS says, while it rejects an annual wealth tax and cautions against higher stamp duty or blunt cuts to pension tax relief.
• Extending the freeze on income tax and national insurance thresholds could raise about £10.4bn by 2029–30, which the IFS says would breach Labour’s promise to protect “working people.”
• Longer‑term reforms urged include replacing stamp duty and council tax with a recurrent property tax based on updated valuations, alongside tighter tax compliance and potential adjustments to bank levies and the surcharge.