"Britons could soon pay more for their favourite chocolate bars as Rachel Reeves's Treasury scrambles to plug a gaping hole in the nation's finances with up to £30bn in new tax hikes. The Chancellor is under intensifying pressure after insiders admitted the Office for Budget Responsibility (OBR) is poised to downgrade productivity forecasts. That shift, expected to be unveiled ahead of the November 26 Budget, would blow apart her plans to balance the books and force a fresh wave of painful revenue-raising measures."
"Among the measures being floated is a levy on chocolate, crisps and sugary snacks - a move that would hit millions of households already battling the cost-of-living crisis. A fresh freeze on income tax thresholds, extended by another two years, could quietly drain £7.5bn more from pay packets. Pensioners also face the prospect of seeing more of their retirement income taxed, while small firms could be dragged into the VAT net if the registration threshold is slashed from £90,000 to just £30,000."
The Treasury is preparing up to £30bn in new tax measures after the Office for Budget Responsibility is expected to downgrade productivity forecasts ahead of the November 26 Budget. Proposed measures include levies on chocolate, crisps and sugary snacks, a further two-year freeze on income tax thresholds, increased taxation of pension income, and lowering the VAT registration threshold from £90,000 to £30,000. Combined with last year’s £40bn measures, the overall tax burden could rise by about £70bn in just over a year. The Resolution Foundation backs such reforms while critics warn of voter backlash amid high inflation and food costs.
Read at Business Matters
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