Overview
- The Office for Budget Responsibility is expected to lower its outlook, creating a multibillion‑pound shortfall the Chancellor must address in the Autumn Budget on 26 November.
- One reported option is a ‘2p swap’ that raises income tax by 2p and cuts National Insurance by 2p, which analysts say could raise about £6bn and would increase tax bills for pensioners and others with income not subject to NI.
- Pension-focused measures under discussion include cutting the annual contribution allowance, levying employer NICs on pension contributions, taxing death benefits and reducing the tax‑free lump sum, with HMRC confirming it is examining limits to salary‑sacrifice reliefs that could cost typical workers around £210 a year.
- Property wealth is in scope, with reports that Reeves is considering new higher council tax bands for expensive homes as a relatively simple way to raise revenue compared with a broader mansion‑style levy.
- Some outlets also report a proposed ‘settling‑up’ exit charge of around 20% on certain assets when people leave the UK, touted to raise roughly £2bn but flagged by experts as needing immediate implementation to deter pre‑emptive departures.