Overview
- Officials told the budget watchdog that plans to raise headline income tax rates had been withdrawn, a week after the chancellor initially flagged hikes as a major measure.
- The Treasury is now pursuing alternative revenue options, including threshold changes and targeted levies such as higher taxes on gambling and expensive properties.
- An extension of the freeze on personal tax thresholds for two more years beyond 2028 is expected, with Sky News reporting it could raise about £8bn.
- The shift leaves an estimated £30bn fiscal gap to close ahead of the 26 November budget, with Downing Street declining to comment on specific measures.
- Reports say two other ideas may be dropped as well, including an ‘exit tax’ on the wealthy and a levy on partnership jobs, against the backdrop of a week of internal briefing wars and leadership speculation.