Chancellor Rachel Reeves has indicated that higher taxes on the wealthy will be part of the upcoming budget, dismissing criticism as 'scaremongering'. Speaking in Washington at the IMF meetings, she stressed her commitment to repairing public finances without a return to austerity.
Reeves is expected to announce a package of tax rises on 26 November, following a downgrade in growth forecasts from the Office for Budget Responsibility (OBR). She confirmed that higher taxes on the wealthy 'will be part of the story', citing previous measures like changes to non-doms and VAT on private school fees as successful despite 'bleating' from critics.
While ruling out a new wealth tax, Reeves has not commented on specific measures. Options include raising capital gains tax, levying national insurance on rental income and partners in law firms, and creating higher council tax bands. There is also speculation about overhauling tax-free Isas to boost UK stock market investment.
Reeves emphasised that the budget would aim to boost economic growth as well as raise revenue. She ruled out spending cuts, pointing to potential cost-savings from new technologies, and stressed that departmental budgets were set in the spending review. She hopes the budget will persuade bond markets to lower borrowing costs.
Criticising the OBR for the timing of its productivity review, Reeves said it would have been better if forecasts were adjusted before the election. She acknowledged the global economic volatility and said the British public understands the need for difficult decisions, adding that she is 'being honest' rather than offering 'false promises'.
