Overview
- After refusing to recommit to Labour’s vow not to raise income tax, national insurance or VAT, the chancellor signalled that “we will all have to contribute” ahead of the 26 November Budget.
- The CBI publicly urged breaking the tax pledge to build real fiscal headroom, warning against further business tax hikes and proposing planning acceleration, infrastructure delivery and scrapping a planned international student levy.
- The Tony Blair Institute advised that any manifesto‑breaching increase, such as on income tax or VAT, should be temporary and conditional, paired with pro‑business measures and followed by targeted tax cuts once growth strengthens.
- Labour’s new deputy leader Lucy Powell said the government should keep its manifesto promise on the three major taxes, highlighting open party tensions as left MPs press for heavier taxes on the wealthy and welfare changes.
- Founder polling reported rising relocation fears, with 88% of entrepreneurs expecting higher taxes and 71% saying they know at least one founder planning to leave the UK under the current tax regime.