Overview
- Government sources say more than 100 tax and spending options are under review to close roughly a £30bn hole after the OBR’s productivity downgrade.
- Reported internal guidance to protect earners below about £45,000 would leave higher earners exposed to potential changes to income tax or thresholds.
- Options under consideration for 26 November include new higher council tax bands, changes to capital gains and pension reliefs, and a 20% levy on business assets taken abroad by wealthy leavers.
- Defence Secretary John Healey said weaker forecasts would have consequences and declined to restate pledges on income tax, national insurance or VAT, as the Treasury reiterated it would not comment on tax speculation.
- The political landscape shifted as Nigel Farage watered down Reform UK’s £90bn tax-cut plan, declined to guarantee the pensions triple lock, and argued for spending restraint to convince markets.