The UK Chancellor, Rachel Reeves, delivered her budget to the House of Commons today. The budget avoids increasing income tax but increases a variety of taxes and reduces tax allowances instead.
Increased taxes under a Labour government would have been predicted by anyone who understands the nature of socialism, regardless of what promises Labour made to woo voters in the run-up to the election.
The Telegraph has summarised Rachel from Accounts’ budget in point form. You can read their summary HERE. Effectively, the Labour government has increased taxes in such a way as to be able to claim they have not increased taxes, as promised in their 2024 manifesto.
The Chancellor has extended the freeze on income tax thresholds for another three years beyond 2028. It will mean income tax thresholds do not increase with inflation, meaning more people will fall into higher bands when they receive pay rises.
Electric vehicle drivers are facing a new pay-per-mile tax from 2028-29, charging 3p per mile. It will be in addition to other road taxes and cost the average driver £255 a year to begin with. The charge will increase in line with inflation.
In September 2026, the 5p temporary cut on fuel duty will fall away. And from April 2027, fuel duty will increase annually in line with inflation.
Salary-sacrificed pension contributions will no longer be exempt from National Insurance from April 2029. This means that salary-sacrificed contributions above £2,000 per year will be subject to both employer and employee National Insurance.
The owners of properties worth £2 million or more face a new “high value council tax surcharge” from April 2028. Property income tax will also rise by 2% points from April 2027.
The amount you can save tax-free in a cash ISA will be slashed from £20,000 to £12,000 from April 2027, unless you are aged over 65. The basic and higher rates of tax on dividends and savings are rising by 2% from April 2026 and April 2027, respectively.
Reeves is also planning to cut an estimated average of £76 from annual domestic energy bills by moving the most expensive green levy from bills to direct taxation.
And there are some sneaky increases in taxation for companies as well.
Socialists are continually trying to expand the area of the State’s tasks, which all cost money. Consequently, there is an increase in expenditure. The only way a state can fund itself is through the productive work of its citizens. When the Government wants to increase its spending, higher taxes on citizens’ earnings are inevitable....<<<Read More>>>...