Overview

• Heidi Alexander declined to rule out introducing a wealth tax in the autumn budget, emphasizing fairness as the guiding principle for any changes.
• Cabinet ministers reaffirmed that income tax, national insurance and VAT will not rise for people on modest incomes while exploring new revenue from high-net-worth individuals.
• The Office for Budget Responsibility warned that current public finances are on an unsustainable path, with experts estimating a £31 billion funding gap driven by economic contraction and a welfare reforms U-turn.
• Former Labour leader Lord Kinnock and Welsh First Minister Eluned Morgan backed proposals for a 2 percent annual levy on assets above £10 million, a plan also urged by unions.
• Successive freezes on income tax thresholds since 2022 have raised billions without rate hikes, but further extensions may still fall short of closing the budget gap.