On Wednesday, Chancellor Rachel Reeves will deliver her maiden budget to the House of Commons, and she warned that she would have to make “tough decisions” to “kickstart” the economy.
Following Labour’s election win, Ms Reeves warned that the public finances were in crisis, with a £22bn black hole, prompting speculation of tax hikes to cover the cost.
As Budget Day edges closer, it has been reported that total taxes will go up by around £35bn.
A major part of the package includes a mammoth £20 billion rise in employer National Insurance Contributions.
Writing in The Sun, Ms Reeves said: “I have had to make tough decisions in this Budget.
“Not everything is going to be easy. But let me be clear – I am doing this for hardworking families up and down the country who have been crying out for change.”
Not pulling her punches, she added: “It is a Budget for the strivers. I will take the tough – but fair – decisions on tax.”
Ahead of the landmark Budget, Labour’s first since losing power in 2010, Ms Reeves is expected to jack up employer NICs, hike capital gains tax on shares, close inheritance tax loopholes, and extend the income tax freeze meaning everyday Brits will pay more tax on their earnings.
Plus, there are concerns that Council Tax may soon be about to rise, but that wouldn’t be decided until the end of the year and wouldn’t come in until April.
That said, Deputy PM Angela Rayner has refused to rule out allowing councils to increase Council Tax by an unlimited amount.
