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To be concerned about tax u turn

94 replies

Costaoff · 14/11/2025 09:43

https://www.theguardian.com/uk-news/2025/nov/14/rachel-reeves-to-abandon-plans-to-raise-income-tax-rates-in-budget

It's evident that Reeves has been forced to back pedal by Starmer. How can you promise not to raise income tax; leak story after story about the need to increase income tax; and then make a last minute u-turn.

I think they will just target everything: pensions, lower the tax threshold; insurance tax; alcohol duty; capital gains taxs; stamp duty.

I think their proposal to increase income tax by 2% but reduce NI by 2% was sensible.

Rachel Reeves to abandon plans to raise income tax rates in budget

Labour had laid the ground to break a manifesto pledge on taxes for working people but has now made a U-turn

https://www.theguardian.com/uk-news/2025/nov/14/rachel-reeves-to-abandon-plans-to-raise-income-tax-rates-in-budget

OP posts:
BigNov · 14/11/2025 10:14

To be honest the only people the income increase really impacts are those on “ok” salaries as opposed to the ultra rich. Those on £45-50k are hardly rolling in it.

blurblebarb · 14/11/2025 10:11

user0507 · 14/11/2025 09:54

It's a ridiculous decision and very short sighted. They are making themselves look incompetent. We do not have enough money to continue in this way. We need to increase income tax

Why? There are so many things the UK spends money on that doesn't help the ordinary person on the street. Scrap foreign aid, scrap the Chagos deal, stop all the very expensive net-zero taxes, don't get rid of the two child cap, especially when you are threatening to tax ordinary workers to pay something that is a privilege to most people (having more than two children).

None of these help with the image that the UK Governments main objective is to do what is right for the people that pay for all this largesse - British workers! They need to massively reduce the welfare state, otherwise next budget they are going to have to tax workers even more and that is not really an incentive to stay working or stay in the country. You don't bite the hands that feed. Totally sick of paying for all this and it sends out such an irresponsible message and makes the country look like a basket case!

lilythesheep · 14/11/2025 10:06

I was really hoping they would put up income tax - not because I love paying more tax, but because it seems like the only sensible way out of this mess that would raise enough money to make a difference. It feels like now they’re just going to be tinkering around the edges in a way that annoys lots of people and doesn’t really make a difference.

Having briefed the story about income tax it now looks even weaker not to go through with it.

HelloClouds · 14/11/2025 10:06

This is disappointing. It seems we want the kind of public services they have in northern Europe but we aren't willing to pay for them. We are already a low-tax country.

I think most people who would have paid higher taxes would scarcely have noticed the increase anyway.

Dacatspjs · 14/11/2025 10:05

Tanking the pound just to save your job is immoral.

TroyTheTough · 14/11/2025 10:00

DisappearingGirl · 14/11/2025 09:51

I am no Labour super fan or anything. But I do feel for them a bit.

They have inherited public services which desperately need more funding (health, social care, education).

When they put up NI everyone whinged.

When they tried to address the welfare bill or winter fuel allowance, everyone whinged.

When there was a rumour taxes would increase, everyone whinged.

Now there's a suggestion taxes won't increase, people on this thread are whinging.

There is simply no easy answer that people will be happy with.

This is why politicians need to have courage and vision- decide what to do and make the case for it. Reversing sensible decisions because people are whinging about them is pointless. Starmer has neither courage nor vision, he is entirely reactive.

TroyTheTough · 14/11/2025 09:58

I agree. They need to raise money somehow- the sensible and obvious way is income tax. The alternatives are a) massively cutting spending (which I think they should also do but won't be popular) or b) endless tinkering to try to make tuppence here and there as we've seen so far, which pisses everyone off, doesn't address the issue and in some cases eg raising employers NICS actively makes things worse.

Dacatspjs · 14/11/2025 09:56

HelpMeGetThrough · 14/11/2025 09:53

Starmer knew he was on the way out, she’s going to deliver the budget and then she’ll be on the back benches very soon after.

Probably with the promise of a peerage to soften the blow...

WeepingAngelInTheTardis · 14/11/2025 09:55

They will deliver the budget - there will be a massive unease, both will be turfed out & a new PM will step in and fuck it up more.

user0507 · 14/11/2025 09:54

It's a ridiculous decision and very short sighted. They are making themselves look incompetent. We do not have enough money to continue in this way. We need to increase income tax

HelpMeGetThrough · 14/11/2025 09:53

Starmer knew he was on the way out, she’s going to deliver the budget and then she’ll be on the back benches very soon after.

DisappearingGirl · 14/11/2025 09:51

I am no Labour super fan or anything. But I do feel for them a bit.

They have inherited public services which desperately need more funding (health, social care, education).

When they put up NI everyone whinged.

When they tried to address the welfare bill or winter fuel allowance, everyone whinged.

When there was a rumour taxes would increase, everyone whinged.

Now there's a suggestion taxes won't increase, people on this thread are whinging.

There is simply no easy answer that people will be happy with.

OmNomShiva · 14/11/2025 09:51

OnlyMabelInTheBuilding · 14/11/2025 09:48

Labour take your money and spend it. She’ll get it somehow. She’s going to try to pretend she’s had an upgraded forecast, when it’s because Starmer was going to be a goner.

She’s a goner, regardless. She just has to deliver the message.

All governments take your money and spend it.

EasternStandard · 14/11/2025 09:49

Dacatspjs · 14/11/2025 09:48

This flailing around is absolutely terrifying. It just shows there is absolutely no plan. This is just in response to the shocking week Starmer has had, rather that any rational thought.

Yep

Dacatspjs · 14/11/2025 09:48

This flailing around is absolutely terrifying. It just shows there is absolutely no plan. This is just in response to the shocking week Starmer has had, rather that any rational thought.

OnlyMabelInTheBuilding · 14/11/2025 09:48

Labour take your money and spend it. She’ll get it somehow. She’s going to try to pretend she’s had an upgraded forecast, when it’s because Starmer was going to be a goner.

She’s a goner, regardless. She just has to deliver the message.

BuffaloCauliflower · 14/11/2025 09:47

I wish they would enlist Richard Murphy who has many excellent policy suggestions. We don’t actually have to ‘balance the budget’, the government make the money and bonds are always wanted in the market. We can spend more than we bring in in tax safely and I’m annoyed Labour are sticking to the Tories austerity bullshit line on this. There’s also plenty of simple ways to bring in more tax from the top that don’t make people panic

Swiftie1878 · 14/11/2025 09:45

Yeah, however they dress it up, we’re all going to be rinsed.

BeMellowAquaSquid · 14/11/2025 09:44

She’s going to take your money somehow.