Budget 2024 latest: Labour insists income tax threshold freeze would not break manifesto pledge
Speculation is mounting ahead of 30 October
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Sir Keir Starmer has insisted the government will keep its manifesto pledges amid reports the Chancellor could extend the freeze on income tax thresholds in this month’s Budget.
Rachel Reeves may be considering pushing the freeze beyond its current expiry date of 2028 in a move that could raise £7 billion, according to the Financial Times.
Continuing the freeze could help plug some of the £40 billion gap the Chancellor is grappling with in an effort to avoid a return to austerity.
Labour’s manifesto promised not to increase rates of income tax, but included no mention of tax thresholds.
The Treasury has so far declined to comment on Budget speculation, but when asked about possible tax changes during a press conference in Berlin, Sir Keir Starmer said: “We are going to keep our manifesto pledges.”
He added: “I’m not going to pre-empt the individual measures that will be outlined by the Chancellor in due course.”
Other measures reported to be under consideration include increasing employers’ national insurance contributions, raising fuel duty for the first time since 2010, changes to rules on inheritance tax and stamp duty, and a levy on e-cigarettes
We’ll be bringing you all the latest updates ahead of the big event on 30 October here, on The Independent’s liveblog.
Inheritance tax to rise in Budget as Reeves plans to hit well-off
The Treasury is reportedly considering plans to raise Inheritance Tax at the Budget, as part of an attempt to raise £40bn and plug a hole in the public finances. According to the BBC, the chancellor is considering multiple changes to the tax, which is charged at 40 per cent on the property, possessions and money of somebody who has died above a £325,000 threshold.
Inheritance tax to rise in Budget as Reeves plans to hit well-off
Just 5 per cent of all deaths incurred Inheritance Tax in 2022–23
Budget 2024: Inheritance tax set to rise – here’s what it means for you
Chancellor Rachel Reeves is reportedly planning changes to inheritance tax at the Budget as she looks to raise up to £40bn from tax hikes and spending cuts.
While specifics remain unclear, any changes could significantly affect how much families pay on inherited properties and their financial futures.
Inheritance tax set to rise – here’s what it means for you
Only around four per cent of families have to pay inheritance tax under current legislation
Stamp duty threshold to drop as Reeves denies extension
The chancellor is reportedly planning to confirm that the heightened stamp duty threshold will drop back to previous levels in March, costing housebuyers up to £2,500 more.
In 2022, the Conservatives under Liz Truss increased the ‘nil rate’ threshold – when stamp duty starts being paid – from £125,000 to £250,000. For first-time buyers, it rose from £300,000 to £425,000.
The approach is expected to raise £1.8 billion a year by 2029-30, but experts have warned the news will cause “chaos” in the property market as buyers rush deals to save money.
Property expert Kirstie Allsopp told Times Radio: “It’s become so complicated that I can no longer tell anyone what they would be paying in stamp duty.”
“It won’t claw back any money. Stamp duty is a dead tax.”
Reeves warned inheritance tax hike would punish middle classes as Budget backlash intensifies
Chancellor Rachel Reeves has been warned that her plan to hike inheritance tax risks punishing middle-class homeowners as the backlash against her Budget intensified.
Ms Reeves is considering an increase on the “death tax”, which raises about £7bn for the Treasury each year, despite the fact it is routinely found to be one of voters’ least favourite measures.
Budget backlash intensifies as Rachel Reeves warned over inheritance tax hike
The duty routinely tops surveys of the most hated tax despite the limited number of people it affects – just 4 per cent
How DWP rules for disability benefit assessment could change as Reeves’ Budget approaches
Changes to disability benefit assessments are set to come into force soon as Rachel Reeves reportedly pushes ahead with plans to shave £3 billion from the welfare bill ahead of Labour’s upcoming Budget.
Read all about the proposed plans here:
New DWP rules for disability benefit assessment under Rachel Reeves’ Budget plan
Changes could take effect from next April as Treasury reportedly looks to save £3bn
Inheritance tax to rise in Budget as Reeves plans to hit well-off
The Treasury is reportedly considering plans to raise Inheritance Tax at the Budget, as part of an attempt to raise £40bn and plug a hole in the public finances.
According to the BBC, the chancellor is considering multiple changes to the tax, which is charged at 40 per cent on the property, possessions and money of somebody who has died above a £325,000 threshold.
Inheritance tax to rise in Budget as Reeves plans to hit well-off
Just 5 per cent of all deaths incurred Inheritance Tax in 2022–23
Independent readers name their priorities for Labour Budget
With a new Labour government in power and the first autumn statement on the horizon, we wanted to hear your economic priorities.
When we asked what you thought should be included in the budget, responses from Independent readers varied widely.
Here’s a closer look:
Readers name their priorities for Rachel Reeves’ looming Labour budget
Many called for a fairer tax system and more direct contributions for public services, while others petitioned for fewer regulations and ‘red tape’ to improve productivity
Reeves considers raising tax on vaping in Budget
Rachel Reeves is considering raising the tax on vaping products in the upcoming Budget as figures lay bare how many children access them in the UK, The Guardian reports.
The tax on vaping products was originally announced by the Conservatives in March, to come in to force in 2026. It is now understood that Ms Reeves could look to increase this.
Under current plans, the new rates from April 2026 will range from £1-3 per 10ml of liquid, depending on nicotine level.
Reeves’ capital gains tax plans will sidestep homeowners, reports say
Experts have long anticipated that Labour will put capital gains tax up in the Budget on 30 October. This is the levy is paid on the profit made when an asset which has increased in value is sold. This includes houses, assets and shares, all paid between 20 and 28 per cent.
The latest reports indicate that Ms Reeves will respond to calls to raise capital gains tax in line with income tax bands – meaning rates of 20 to 40 per cent – but will exempt property from the new rates.
Rachel Reeves to push forward with £3bn sickness benefits cut in Budget
Rachel Reeves is understood to be considering about £3bn of cuts to the welfare bill over the next four years by restricting access to sickness benefits, as the chancellor embarks on a brutal cost-cutting mission to fill a so-called £22 billion black hole left by the Tories.
The chancellor is expected to save the £3bn sum by committing to the previous government’s plans to reform work capability rules.
Rachel Reeves to push forward with sickness benefits cut in Budget
Charities warned the cuts would have a ‘devastating impact’ on disabled people
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