Tax resistance is building as households and firms hit their limits. Reeves' strategy risks faltering without a credible quid pro quo. A reset on spending and growth may be unavoidable ...
Tax resistance strong, Against unjust demands, Revolt in the fight
People can sense the mood shifting, and the term 'tax resistance' is no longer fringe chatter, but a mainstream reaction to a floundering government that keeps reaching for the same economic lever. I see weary households, talk to dubious investors, and support battle-scarred businesses, all asking a very simple question ...
Where's the give for all this take?
I feel that the next Budget, pushed to late November, only amplifies this sense of drift. After last year's £40bn haul, amid promises of 'no more', the concept feels threadbare as revenues disappoint and spending pressures swell. When taxes climb to a seven-decade high, even modest tweaks feel like sledgehammers.
I hear it most starkly from my clients: rising Corporation Tax, stealthy allowance freezes, and sector-specific levies are stacking up. More generally, banks, supermarkets, oil and gas producers, and gambling groups fear another turn of the screw.
I'm certainly seeing behaviour change in real time. Pension savers have rushed to take tax-free cash, opting for a smaller, certain benefit over a larger, uncertain one. Families are accelerating lifetime gifts. The message is clear: if the rules keep shifting, people will move faster than the rules can keep up.
The property market is a perfect case study!
Higher stamp duty at the top end has made a single move cost tens of thousands of pounds, enough to freeze would-be buyers and sellers. A possible 24 per cent Capital Gains Tax on residential gains would likely entrench the logjam, discouraging downsizing and rendering upsizing a fantasy for many.
Anyone with an interest in shares and investing will see the gilt market quietly vote with its feet. When 30-year yields lurch higher, it signals concern that taxes alone won't balance the books, and that credible spending choices are way overdue. Businesses also read those signals, and some are already redirecting investments to jurisdictions with clearer incentives and steadier rules.
The social licence of “tax now, reform later” has expired. Sustainable revenue requires growth, and growth necessitates stability, investment, and a credible plan to constrain spending over time. Without that, Tax resistance will harden from cautious planning into open avoidance and capital flight.
I don't think the path forward is complicated, just difficult!
The government must be transparent with voters on its priorities, maintain spending discipline over multiple years, establish investment certainty, and reserve targeted taxes for genuine distortions rather than easy headlines.
Do that, and tax resistance fades; fail, and it becomes the defining constraint of this government's economic legacy.
If anything I've written in my blog post resonates with you and you'd like to discover more of my thoughts about tax resistance, then do call me on 01908 774320 and let's see how I can help you.
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.
Business costs are rising, and bosses can feel it in wages and energy bills. However, the latest concessions on workers' rights could mitigate the impact and give firms more time to adapt. It's a pragmatic tweak that keeps pr...
Key payroll changes for 2026 are mainly about higher wage floors, tighter thresholds and better forward planning. My blog post today walks through what shifts in PAYE, National Insurance, and compliance mean in practice. Cons...
Here are my predictions for small businesses in 2026. I've been thinking about tax reporting changes, hiring incentives, cyber resilience, smarter AI use, sustainability data requests and new channels to market ......
Here's the lowdown on HMRC using AI to review social media in criminal tax probes. It's about more intelligent fraud detection with human oversight, not bots running wild. Taxpayers should receive clearer guidance and fewer e...
AI speeds up data capture and checks, while accountants provide guardrails. Use both to prepare your tax return with fewer errors and less hassle. It's efficient, affordable, and grounded in human oversight ......
Not long to go now, and everyone at Essendon Accounts & Tax is looking forward to a well-deserved break over Christmas. We will be closing at 1pm on Wednesday the 24th of December 2025, returning at 8am on Tuesday the 5th...
Mandatory payrolling of Benefit-in-Kind, originally slated to arrive in April 2026, has now been delayed until 2027. Employers will eventually shift tax and Class 1A NICs into payroll. Here's what changes, what's unclear, and...
Wondering why duplicate firms are appearing on Companies House? Here's what's happening, why it matters, and how firms can stay ahead. It's practical, calm, and focused on action ......
Building a cyber-smart culture is about making secure choices the default, not a one-off project. Get cyber awareness training into the flow of work, ...
Digital money is edging closer to everyday life, with regulators, banks and central banks aligning. This post looks at what might click into place in ...
For most web designers, building a great-looking website is only part of the job. Clients increasingly want more than clean layouts and responsive pag ...
Wondering if a self-assessment tax return is due by the end of January 2026? This explains who typically needs to file, how the £1,000 trading allowan ...
