Overview
- Reports say the Chancellor has abandoned a rate hike and will extend the income tax threshold freeze to 2029/30, raising about £8 billion a year and pulling millions more into higher bands, with London and the South East hit hardest.
- Multiple outlets report plans to expand the Soft Drinks Industry Levy to milk-based drinks and lower the sugar threshold to 4g per 100ml from 2027, a move critics say shifts the goalposts for firms that reformulated.
- Briefings point to a new property surcharge targeting high‑value homes, potentially raising around £600 million and affecting roughly 300,000 properties, with deferral options floated to protect cash‑poor owners.
- Further measures under consideration include allowing mayors to introduce overnight levies on hotel and rental stays and tightening reliefs and sectoral charges such as salary‑sacrifice schemes and EV‑related taxes.
- Gilt markets sold off after the policy U‑turn, with investors alert to further shifts as improved OBR forecasts reportedly narrow the fiscal hole to around £20–30 billion and pre‑Budget uncertainty weighs on spending and housing sentiment.