{"id":318,"date":"2024-07-29T09:15:26","date_gmt":"2024-07-29T09:15:26","guid":{"rendered":"https:\/\/paarentingnation.com\/?p=318"},"modified":"2024-08-01T15:42:33","modified_gmt":"2024-08-01T15:42:33","slug":"are-higher-taxes-incoming-chancellor-rachel-reeves-faces-tough-decisions","status":"publish","type":"post","link":"https:\/\/paarentingnation.com\/index.php\/2024\/07\/29\/are-higher-taxes-incoming-chancellor-rachel-reeves-faces-tough-decisions\/","title":{"rendered":"Are Higher Taxes Incoming? Chancellor Rachel Reeves Faces Tough Decisions"},"content":{"rendered":"
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Sir Keir Starmer soared to the top spot of UK politics on the 4th July 2024 with a string of promises. One of the key ones for voters will have been Labour’s promise “not to raise taxes for working people” if they were to win the General Election.\u00a0<\/strong><\/p>\n

Experts at the time pointed out the rather clever wording, and critics often pushed Labour party members to provide more detail, but they toed the party line and refused to elaborate. With Rachel Reeves ordering a full audit into the state of the UK’s finances the very same day she took over the role as Chancellor from the Conservative’s Jeremy Hunt, those critics became even more suspicious of Labour’s intentions.<\/p>\n

Over the 27th-28th July 2024 weekend, just over 3 weeks from the date Reeves took over, a \u00a320 billion black hole in UK finances was announced, and breaking from tradition still further, the Chancellor decided that she would be an open book about the state of those finances, explaining, in detail, where that money was missing in a speech on Monday 29th July.<\/p>\n

What Does This Mean For UK Working People And Businesses?<\/h2>\n

Well, financial commentators and experts are now convinced that higher taxes are incoming, but it might not affect UK business owners and workers in the ways we would expect.<\/p>\n

Labour are still absolutely committed to not raising taxes on working people – that means no rise in National Insurance, Income Tax or VAT. For workers, then, there may be less to worry about.<\/p>\n

As for UK businesses, Labour also committed to not raising corporation tax above 25%, meaning UK businesses won’t be hit too hard in any future tax rises expected to be announced in the Autumn statement.<\/p>\n

But there’s no denying that Labour seem to be teeing up for some tax rises\u00a0<\/em>but what will they be?<\/p>\n

The Chancellor’s Options<\/h2>\n

If Labour stick to their campaign pledges (which they would be wise to do so early on in their tenure at the top, lest they lose voter trust), then the Chancellor is limited in her options, but we could see a number of key tax rises. These tax rises would\u00a0technically\u00a0<\/em>be in line with their campaign promises, but will almost certainly leave a bitter taste in some voters’ mouths. In fact, some economic experts argue that a tax rise in anyway is a break from Labour’s promises, as it will be working people who are hit by any tax rise.<\/p>\n

Be that as it may, Labour will need to fill the alleged \u00a320 billion hole somehow, and raising tax may be their only option. Some possible tax rises include:<\/p>\n