#tax-increases

#tax-increases

Taxes are going up not because of Brexit, Ukraine, Trump, poor productivity or the tooth fairy running away with the magic money tree at the end of the Downing Street gardens. They are increasing because of conscious Labour policy choices to abandon welfare reform, eschew any cuts in public spending and tax working people more to raise welfare benefits - the express demands of Labour backbenchers on a Prime Minister and Chancellor too weak to resist them.

The 2% increase to dividend tax rates, property and savings (raising over £2 billion) presumably breaks Labour's manifesto pledge not to increase Income Tax. The reduction in the cash ISA limit to £12k will cost a higher rate taxpayer over £140 in income tax (assuming interest rate of 4.5% and no personal savings allowance). The ISA regime has just been made (even more) unnecessarily complicated by having a different regime for over-65s. I understand the logic but this is making a mess of ISAs

The Democratic Socialists of America - empowered and gaining mainstream influence after Mamdani's win in the mayoral election this month - held a "Tax the Rich" rally in Union Square Sunday as Democratic state lawmakers warm to the tax increases over worries they could face primaries and the wrath of liberals in next year's elections. DSA member and Brooklyn state Sen. Jibari Brisport told those gathered that he twice tried to work with Hochul on passing universal childcare legislation, only to get rebuffed.

He has highlighted four signature policy proposals: universal child care, free buses, city-owned grocery stores and a rent freeze on rent-stabilized apartments. These ideas have excited New Yorkers who are worried about the soaring cost of living. But if Mr. Mamdani wins, the plans could be difficult to implement. He would have to secure support from critical stakeholders, find funding to pay for the plans and hire the right staff members to make sure they are successful.

"The Directors' Economic Confidence Index, a key barometer of UK business sentiment, dropped to -53 in June 2025, down from -35 in May, marking a significant deterioration in optimism among company directors."