Rachel Reeves has sent shockwaves through Middle England as she hinted that those with the “broadest shoulders” would be forced to cough up billions more in a painful tax raid.
With the economy flatlining over the summer, the Chancellor has laid the groundwork for a Budget that will mercilessly target the better-off, sparking fears that property, pensions, and savings could be in the firing line, reports the Daily Mail.
Despite ruling out a specific wealth tax, Ms Reeves’ ominous remarks have intensified speculation that inheritance tax, retirement schemes, and landlords could be in for a hammering.
The Chancellor’s clear signal that those with the “broadest shoulders” should pay their “fair share” has left many wondering just how deep she will dig into their pockets.
Chancellor’s assets-based judgment leaves homes and savings vulnerable
In a chilling indication of what’s to come, Ms Reeves suggested that her judgment on who to target would be based on their assets, rather than their wages. This has left many fearing that their hard-earned homes and carefully saved nest eggs could be at risk as the Chancellor seeks to fill a gaping financial black hole.
The Chancellor drew a fine line between specific wealth taxes, which she has ruled out, and measures that “do tax wealth and do tax wealthy people,” many of which were already hiked by Labour in 2024. This has done little to ease the concerns of those who fear they will be caught in the crosshairs of the Chancellor’s tax-grabbing agenda, says the Mail.
Shadow Chancellor warns ‘nothing is safe’ under Labour
Shadow chancellor Sir Mel Stride has sounded the alarm, warning that “under Labour nothing is safe. Not your home, not your pension, not your savings.” He has called on Ms Reeves to show some “real backbone” and control Government spending, rather than “shaking down the taxpayer again.”
Institute of Chartered Accountants in England and Wales chief executive Alan Vallance has also fired a stark warning, saying: “Britain faces a damaging cliff edge if the Chancellor decides to raid businesses again at next month’s Budget. Business confidence is fragile, investment is stalling, and everyday decisions are slowed by complexity, cost and uncertainty.”
Economy grinds to a halt as UK stalls over summer
In a worrying sign for the Chancellor, the economy grew by a meagre 0.1 per cent in August, having shrunk by 0.1 per cent in June – meaning the UK effectively stalled over the summer. With experts fearing that speculation ahead of the Budget will further dampen growth, Ms Reeves faces an uphill battle to get the country back on track.
The boss of Whitbread, the owner of Premier Inn, has fired a warning shot at the Chancellor, urging her to steer clear of further “punitive” tax increases for businesses. Dominic Paul has also pointed the finger at Labour’s workers’ rights bill, which he says is making it harder for companies to grow.
Tories warn of ‘taxi tax grab’
The Tories have accused Labour of plotting a “taxi tax grab” as ministers “run out of road.” With the Chancellor refusing to rule out slapping VAT on private hire fares, fears are growing that cabbies will be clobbered in the Budget, hitting rural areas and those with disabilities hardest.
In a glimmer of hope for struggling households, the Chancellor has vowed to take “targeted action to deal with cost of living challenges” in the Budget. With plans to cut energy bills on the table, Ms Reeves is scrambling to find ways to ease the burden on cash-strapped families while desperately trying to balance the books.
Soaring inflation leaves Chancellor scrambling for solutions
As prices continue to skyrocket, with inflation hitting a staggering 3.8% in the 12 months to August, the Chancellor has admitted that the situation is “too high.” With the IMF predicting that the UK will face higher inflation than any other leading economy this year and next, Ms Reeves is under immense pressure to find a solution to the crisis.
In yet another blow to households, Octopus, the UK’s biggest energy supplier, has warned that electricity prices will soar by a staggering 20% within the next four or five years unless the Government takes drastic action. With the energy price cap already raised by 2% this month, pushing average annual bills to an eye-watering £1,755, many are left wondering how they will keep the lights on as the Chancellor grapples with the growing crisis.