As the government continues to remind voters of their financial bequest from the Tories—that is, borrowing at levels not seen since the pandemic—that is what economics and data editor Ed Conway is hearing.
Conway has stated that Rachel Reeves’s first budget, which is due on October 30, will be “quite miserable,” with both tax increases and spending cuts anticipated.
Ms. Reeves has acknowledged that the latter is something that is planned, despite Labour’s election manifesto vowing that income tax, national insurance, and VAT would not change.
News examines which ones might be targeted in light of it.
The most probable tax to change is this one.
When someone passes away, inheritance tax is levied at a rate of 40% on any estate worth more than £325,000.
To raise money, the tax rate might be raised or the amount that beneficiaries must pay in inheritance could be decreased.
Agricultural land and family enterprises are currently exempt, however these exemptions may be lifted in the future to include them.
The length of time that can pass before a person passes away and the inheritance tax becomes applicable could potentially be shortened by the government.
The current chief secretary to the Treasury, Darren Jones, was heard on a leaked tape from March suggesting that inheritance tax may be used to “redistribute wealth” and promote “intergenerational equality.”.
