- UK budget scrutiny over spending cuts and tax policy
- Political figures including Andy Burnham, John Healey, and Kemi Badenoch clashed over national budget policy in Parliament.
Think Tank Report Urges £6 Billion Tax Raid to Address Public Finance Hole
What happened
The Resolution Foundation released a report suggesting a £6 billion tax raid on pensioners and landlords to help fill a large hole in public finances. The report estimates that Chancellor John Healey's Budget headroom has fallen from £24 billion to £12 billion amid a perilous economic backdrop. The think tank also proposed a 'tax switch,' which would increase income tax by 2p while cutting national insurance by 2p, targeting self-employed individuals, landlords, and pensioners.
From dailymail.com
Why it matters
The findings put pressure on John Healey to deliver a robust budget to fix public finances, particularly given the need for billions in extra cash for defence spending and cost of living help. The report suggests targeting homeowners, banks, and wealth to fund necessary expenditure.
Political figures, including Andy Burnham, John Healey, and Kemi Badenoch, have clashed over national budget policy in Parliament.
From dailymail.com
Who's involved
- John HealeyChancellor who is being urged to deliver a robust budget to fix public finances.
- Resolution FoundationIndependent think tank that provided policy analysis and recommendations on fiscal matters.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Ministry of DefenceSpeculative
The Ministry of Defence could require increased funding for defense spending, as the report notes billions are needed.
- Department for Work and PensionsSpeculative
The Department for Work and Pensions might see its funding secured by tax proposals aimed at filling the public finance hole.
- Confederation of British IndustrySpeculative
The Confederation of British Industry may see its business costs and operational structure affected by proposals for tax switches.
How it developed
Newest first. Tap a step to see who reported it.- IFS and the Resolution Foundation have made specific tax recommendations, urging John Healey to announce a tax switch.Sub-event
Resolution Foundation findings inform Labour ministers' budget planning.1 source
Keep exploring
Part of
Political figures including Andy Burnham, John Healey, and Kemi Badenoch clashed over national budget policy in Parliament.Also in this story
- Political figures criticized the government budget, with Healey signaling spending cuts and the Resolution Foundation issuing warnings.
- Kemi Badenoch criticized John Healey's budget, and Healey was interviewed on LBC.
- Kemi Badenoch publicly supports John Healey's proposed budget.
- Andrea Egan advised John Healey and Andy Burnham on tax policy, urging Burnham to be bold.
The entities involved
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John Healey
British politician (born 1960)
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Resolution Foundation
independent British think tank
Related events
- Cathy Newman and Euan Blair discussed tax plans under fire ahead of the Chancellor's Budget on October 28.
- HM Treasury published a Fiscal Devolution Roadmap as John Healey addressed local leaders' funding needs, amid IFS warnings.
- The Chancellor outlined goals for the upcoming Budget, with John Healey delivering his first speech at the Manufacturing Technology Centre.