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.
As the next budget approaches, speculation about tax changes is gaining momentum. The Chancellor faces a difficult balancing act: managing public finances, encouraging economic growth, and avoiding further pressure on busines...
There is something wonderfully British about gathering colleagues around a table, ordering a few sandwiches and calling it a productive meeting. After all, everyone needs lunch, and discussing business while eating seems perf...
The recently announced State Pension Triple Lock changes mark a significant shift in how the State Pension could increase in the future. The existing triple lock will remain in place until April 2030, but after that the earni...
A director's loan account can be a normal, useful part of running a limited company. It records money moving between a director and their business that isn't salary, a dividend or reimbursement of a genuine business expense ....
The state pension triple lock has played an important role in protecting pensioners from falling behind as wages and prices rise. For many people, particularly those with little other retirement income, that protection matter...
Cybersecurity risks for businesses continue to evolve, and recent incidents show that it is no longer enough to think of cybersecurity as something that concerns only large organisations or technology companies. The ways a bu...
There has been plenty of discussion about UK business growth recently, and the Chancellor has now given us some indication of the direction the Government intends to take in the October Budget ......
Growth is talked about constantly, but I think we sometimes overlook something rather obvious. Businesses need the confidence and financial headroom to invest before meaningful growth can happen. Right now, the cost of doing ...
Finding the right serviced accommodation in Milton Keynes can make all the difference to a successful project. Whether you're on a short-term contract ...
Have you ever stopped to think about the difference you want to make in the world? For some people, that means tackling global challenges, changing li ...
Choosing trusted contacts may sound straightforward: pick someone you know, add their details, and you're done. But it's worth thinking a little more ...
Every small business generates documents. From invoices and contracts to customer correspondence and internal procedures, the amount of information ca ...
All content on this blog, including but not limited to text, images, videos and audio, is protected by copyright. No part of this blog may be reproduced, copied, distributed, or otherwise used without the prior written consent of the author. Unauthorised use constitutes a breach of intellectual property rights.
Please note that many elements of this blog have been created using Artificial Intelligence (AI). As such, content may not always reflect verified facts or professional advice. The information provided is for general interest only and should not be relied upon as a sole source for making decisions, financial or otherwise. Readers are strongly advised to seek independent advice from qualified professionals appropriate to their country and situation.
The author of this blog, YourPCM Limited, and its directors, employees, and authorised agents accept no liability for any loss, harm, or consequence arising from the use or interpretation of content found on this site.
The sblogit.com platform is provided on an “as is” basis. By continuing to view or interact with this blog, you acknowledge and accept these terms. If you do not agree with any part of this notice, please cease using this site immediately.
YourPCM Limited is a company registered in the UK and operates exclusively under the jurisdiction of the laws of England and Wales.
