Autumn Budget 2024: Will Tax Hikes Drive Britain To Destitution?
Are they really necessary?
Posted by Roger Eddowes on 23/09/2024 @ 8:00AM
The upcoming Autumn Budget 2024 has a lot of people worried as the Labour Government has already removed a key benefit for pensioners and stoked the rumour mill around tax rises for many ...
The debate over tax hikes in the Autumn Budget 2024 also brings up the question of fairness!
The United Kingdom is apparently facing a £22bn gap in public finances that is being blamed on the previous Conservative Government's incompetence, but came mostly out of future spending that couldn't be quantified fully.
"So, the pressure is on for the new Chancellor to find ways to fill this deficit!"
And this means that Rachel Reeves is considering a number of tax hikes that will be painful for many. This has sparked a heated debate among politicians, economists, and the public at large, who are becoming more and more angry.
On one hand, some argue that tax hikes will drive Britain to destitution. This fear is not unwarranted, as high earners are reportedly preparing to leave the UK if significant wealth levies, such as a mansion tax, are implemented.
The loss of these wealthy individuals will have a significant impact on the economy, as they contribute a large portion of tax revenue. Additionally, raising taxes on middle-class individuals could also have detrimental effects, as they may struggle to make ends meet with less disposable income.
On the other hand, some believe that tax hikes are necessary to address the £22bn gap in public finances. The Resolution Foundation think-tank has proposed reforms to capital gains tax and inheritance tax, which could potentially raise over £20bn annually for the Treasury.
They argue that these changes would only affect the wealthiest individuals and would not significantly impact the majority of the population. Furthermore, levying National Insurance on employers' contributions to staff pensions could generate an additional £9bn a year, providing much-needed funds for the government.
"The debate over tax hikes also brings up the question of fairness!"
While some argue that those with the broadest shoulders should bear the burden of tax increases, others believe that it is unfair to target high earners and wealthy individuals. This debate has led to discussions about the potential long-term reforms to business rates, council tax, and per-mile road pricing, which could have a more significant impact on the overall tax system in the UK.
As the government weighs their options, the fate of the country's economy hangs in the balance. While tax hikes may provide a short-term solution to the £22bn gap in public finances, they may also have long-term consequences. High earners leaving the UK could have a domino effect on the economy, leading to a decrease in tax revenue and potentially causing more harm than good.
The upcoming Autumn Budget 2024 is a crucial moment for the UK's economy! The possibility of tax hikes has sparked a heated debate, with valid arguments on both sides!
While some fear that these changes could drive Britain to destitution, others believe they are necessary to address the £22bn gap in public finances. As the government makes their final decisions, it is essential to consider the potential consequences.
Any changes made must be fair and sustainable for the country as a whole.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more of my thoughts about the Autumn Budget 2024, it may be a great idea to call me on 01908 774320 and let's see how I can help.
Don't forget to stay updated with our daily social media posts on Facebook.
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
No unauthorised use, duplication, distribution or modification to any original content contained within this blog is permitted without prior written permission of the author. All other trademarks and registered names are acknowledged.
