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The chancellor, Rachel Reeves, is planning to increase taxes in October’s budget in an effort to plug what she has described as a £22bn shortfall in the public finances.
The Labour election manifesto ruled out raising the rates of income tax, national insurance or VAT, but other personal taxes are in the firing line as official data published on Wednesday showed spending on public services and welfare pushed government borrowing to £3.1bn last month, more than double its level in July 2023.
Reeves is believed to be exploring how to raise more from inheritance tax and capital gains tax as well as getting tough on benefits. Last month, she scrapped winter fuel payments for most pensioners – and may resist pressure to lift the two-child benefit cap. Here we look at what the tax changes predicted in the autumn budget could mean for you.