Politics · United Kingdom · 1 hr ago
Think tank urges £8bn in tax rises to rebuild UK fiscal buffer
The Resolution Foundation has urged the UK government to raise about £8bn in taxes at the October 28 Budget.
It says the Chancellor should make difficult choices now rather than postpone them until next year’s spending review.
The think tank estimates the fiscal buffer has fallen from £24bn to as little as £12bn, partly because of the Middle East war.
It also calls for targeted help with winter energy bills for households where no one earns more than £24,000.
Its proposed tax changes include shifting some tax from employee national insurance to income tax and closing capital gains tax exemptions.
The government’s Budget decision is due on October 28, when it will set out its plans.
The Resolution Foundation urged Chancellor John Healey to raise about £8 billion in taxes at the October 28 Budget to rebuild his fiscal buffer.
The think tank said the buffer may have fallen from £24 billion to as little as £12 billion, partly because of the Middle East war.
It said the Government should also help families struggling with energy bills through the coming winter.
Its proposals include shifting 2p from employee National Insurance to income tax and closing capital gains tax loopholes.
- Who
- The Resolution Foundation urged Chancellor John Healey to raise taxes.
- What
- The think tank called for about £8 billion in tax rises to rebuild the fiscal buffer, alongside targeted support for struggling households.
- When
- The recommendation was made ahead of the Budget on October 28.
- Where
- The United Kingdom.
- Why
- The foundation said the fiscal buffer had fallen because of the Middle East war and urged the Government to address public finance challenges rather than defer decisions.
Resolution Foundation
Treasury's apparent plan
Budget decisions
Resolution Foundation
The foundation said delaying difficult decisions was “not the right approach” and called for tax rises and spending restraints.
Treasury's apparent plan
The Treasury's apparent plan was to defer key choices until next year's spending review and hold a minimal fiscal event at the Budget.
The Independent published a report on the Resolution Foundation's call for tax rises ahead of the Budget.
The Budget is scheduled to take place.
- Proposed tax rises
- About £8 billion
- Fiscal buffer before deterioration
- £24 billion
- Fiscal buffer forecast
- As little as £12 billion
- Target fiscal headroom
- At least £20 billion
- National Insurance and income tax switch
- 2p
- Budget date
- October 28
What people are saying
We think there’ll be a pretty chunky deterioration in the public finances.
What we’re calling for today is a Budget that focuses up to our problems and doesn’t push everything off into the never never.
Sources
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