Incomes, savings and milkshakes, what is the government not taxing? - London Business News | Londonlovesbusiness.com

"The government's Budget, presented today (eventually after the OBR leak), introduces a suite of tax and regulatory changes that will increase the financial pressure on households while offering little to support economic growth or consumer freedom. The combination of frozen income-tax thresholds, reduced savings allowances, and limits on flexible pension arrangements amounts to a substantial, stealthy tax rise on ordinary earners. These measures shift more income, savings, and investment into the tax net without transparent debate."

"The Budget also signals a renewed push for lifestyle taxes, including levies on milkshakes, other milk based sugary drinks, and gambling products. Although framed as public-health measures, these taxes disproportionately hit lower-income consumers and erode personal choice. "Lifestyle taxes are an ineffective, regressive way to shape behaviour," added Salem. "Whether it's milkshakes, betting products, or other 'sin' categories, these taxes restrict consumer autonomy and make everyday activities more expensive without meaningfully improving health outcomes, and further contribute to inequality as it hits the poorer disproportionately more.""

The Budget implements tax and regulatory changes that increase financial pressure on households while providing little to boost economic growth or consumer choice. Frozen income-tax thresholds, reduced savings allowances, and tightened flexible pension arrangements effectively broaden the tax net and impose a stealth tax rise on ordinary earners. Restrictions on salary-sacrifice pension contributions undermine long-term retirement planning and reduce household flexibility. New levies on milkshakes, milk-based sugary drinks, and gambling disproportionately affect lower-income consumers, restrict personal autonomy, and risk expanding state influence over private behaviour. Such regressive measures also create volatile revenue streams and worsen inequality.

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