Sunday, 26 October 2025

Budget Ideas For The Chancellor

As the Budget looms over the hill, the kite flying by the Government has began in earnest as they throw out possible ideas and wait to see the reaction which allows the Chancellor, Rachel Reeves, to either deny they were ever a serious plan while scribbling them out of her list or putting a little tick next to them ready for November 25th.
The issue the Government have is that in their election manifesto they said they would not increase VAT, National Insurance or Income Tax so with those restrictions holding firm, she will need to get creative or at the very least nick some policies from the other Parties.
The Green Party said they will introducing a wealth tax of 1% on assets above £10m and 2% on assets above £1bn and in a BBC Poll, 75% of Britons would support it so expect that to be aired at the dispatch box.
The Liberal Democrats suggested a mansion tax on homes worth more than £2m and in the poll 69% of the public put their thumbs up to it so another to add to the list.
An exit tax for people who are relocating themselves out of the UK for tax purposes and will be required to pay tax on unrealised capital gains sounds good to 60% as does reforming the council tax so it is proportionate to the exact value of the home as opposed to the current system based on which value band it falls in which 56% say should be in the final report.
Merging income tax and National Insurance together into a single tax is seen positively by 43% but that is pretty much the last of the ideas which won't get rotton fruit thrown at her because making road users pay car tax on the for the distance they travel on public roads is only supported by 38% and reducing the top rate of tax to be less than 40% is seen favourably by 29% and poo-pooed by 50%.
The least favourable idea is scrapping different income tax levels and replacing them with a flat' income tax that is set at the same level for everybody which only 20% say they would approve of byt 65% say on yer bike.
So if we take the popular ideas, how much would the Chancellor raise?
Economists at the London School of Economics suggest that a Wealth Tax could raise around £24bn a year, Mansion Tax £2.5bn, Exit Tax £500m per year and the merging NI and Income Tax would increase the take by £6 billion so potentially £33bn, equivalent to sticking 4p on Income Tax so bit of a no brainer really, hitting mostly only the richest except the merging idea which would mostly affect Pensioners currently not paying National Insurance but they all vote Tory or Reform anyway so no loss there.  
Of course, my own ideas of scrapping the Nuclear Weapons (£200 bn saved), reverse the madness that was Brexit (£140bn raised), a windfall tax on banks and utilities (£20 billion raised) and ditching the Royals (£100m saved) would flood an extra £360bn into the UK coffers so feel free to use any of these Rach. 

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