how will the government raise the money?

[thereiscustardinthejamtart]

I’m curious as to how the government are going to raise the money for the “£22b black hole”.

Presumably they can either cut spending or raise more money (either through taxation or growth).

They have said they aren’t going to raise income tax, VAT or NI.

They don’t seem to be going for a growth plan.

So what are we expecting to be cut, and what are we expecting to be taxed.

I assume they are looking at pensions (get rid of tax free lump sum, reduce or eliminate relief on contributions), inheritance tax, some kind of additional tax on corporations. They are already doing VAT on private education.

Cuts - winter fuel allowance. I assume reduction in university funding, arts funding. What else?

Who knows, we complained about the last government, and now this one

There will be more tax on assets, how they will do it exactly who knows ye5, but what you have mentioned. Universities are fucked already, almost every single one is currently offering severance and also not replacing posts through natural wastage and they are haemorrhaging experienced staff, both academics and support staff. I left a few years ago and DH is now taking the severance offered and leaves before the new term starts. His dept will have lost 4 academic staff over the last 18 months that have a total of 120 years of teaching and research between them. Even Cambridge has a reorganisation scheme, imagine that. DH has a lot of friends that work there, he was a junior researcher there.

Someone on another thread mentioned the lottery, which got me thinking that some kind of windfall tax on gambling winnings might not be a bad idea.

They could simply ask the Bank of England to generate more funds and use that as investment/spending on public services. Or,

The 22 billion could be cleared, and then some, with a one off wealth tax on assets over 2 million.

Equalizing capital gains would raise approx £14 billion.

Scrapping Trident would save £200 billion.

Removing subsidies for fossil fuel companies approx £15 billion over 4 years.

But, they'll probably get it from those that can least afford it, like the last lot.

I was just thinking what could go up if it's not VAT. I guess they might put duty on booze, fags or even petrol but I can't see that making a dent.

I'm down south and frankly the place is awash with money. Nice cars everywhere, yoga, healing, fitness classes plentiful and full up Everyone on my estate seems to building or extending, gardening firms doing a roaring trade, all my friends have second homes or rent out property. Yet Indeed only seems to have jobs advertising £25-28 for professional degree educated people.
It's a real divide. Goodness knows what the plan is.

We will see in October.

I'd be taxing SUVs, reducing tax exemptions, scrapping all road projects, and changing stamp duty to be paid by the seller (so no first time buyer exemptions). And no doubt a few other things.

By getting some of the 9 million unemployed into working.

Stopping benefits for work shy people (I know people who choose to work a limited amount of hours or not at all, so they can keep £3k+ a month from the government). This gravy train isn't sustainable.

My friend who lives in the US gets taxed 10%, tempted to move over there with a work opportunity at this point. No point working hard in this country and earning over £100k as a household as you'll get destroyed.

In today's World TRUST ME, you don't want to scrap Trident.

What a ridiculous suggestion to scrap Trident.

They need something that quickly raises a lot of tax (but will not be putting up the percentage tax rates). They might abolish the single person tax allowance for all. They could remove all tax relief on pensions of all kinds (but that is probably unlikely - they might remove upper rate tax relief on pensions). I suppose they might go after ISA pots in some way. They could increase the rate of capital gains tax and reduce IHT nil rate bands.

The big fear is a tax on properties worth over £500k or £1m and what form that might take. In 2024 90% of earners have had slightly lower taxes since 2010 whereas those on £67k+ have the highest tax burden in 70 years so I am not too sure those higher earners have much spare left to give.

Labour will tax capital wealth via the following means:

1. Capital Gains will be taxed at the same rate as income tax.
2. A Wealth Tax will be introduced on liquid assets above £3m.
3. Higher rate tax relief on pension contributions will be replaced with a flat 20% relief.
4. Council Tax bands will be 'energised' with homes worth over £2.5m where the occupying household income is above £250,000 being subject to new bands 'S1-S5' - ie a 'Coefficient Tax'.

I'm going to say it even though I know it's not popular on MN but it's high time we started looking at what we are sending abroad.

If they really need to find that much money it won't sit well with most people if the government keeps giving our money away whilst going after pensions, cutting services and raising taxes.

Tax big business and millionaires.

Oh, and there is another one.....

5 - Flat rate 20% 'wealth tax' on any cheques written for the purchase of a new washing machine.

They already pay tax at 55%. They will just relocate to Dubai.

Anybody going to bet on them increasing corporation tax, or increasing tax on higher incomes (an extra 1% after the first £1m)?

Sure they will.

The thing is, I don't trust you. I've yet to see any compelling evidence that they do anything in terms of deterrent. It hasn't stopped Ukraine marching into Russia has it?

Corporation Tax - no change. Hunt increased it to 25% just as we negotiated a minimum 15% rate with the OECD members. One small exception might be higher rates for private companies who sit on cash profits (a tax actually in place during the Thatcher years).

Personal income tax - I wager 60% above £200,000. It was raised to 50% above £150,000 in 2010 just before Labour lost their 13 year tenure ship under Blair/Brown. The Conservatives didn't change the rate for the next three years. They did a deal with the Lib Dems to keep that rate high in return for £10m of CGT relief per individual.

Labour have a blank cheque. They will live or die by it.

They will widen the tax bands so more will be paying the higher rates of both 40% and 45%.
CGT will be increased.
Inheritance tax will be increased.
Welfare will be cut in parts.

They might abolish the single person tax allowance for all.

Labour? Seriously?

No Government would ever do that - except North Korea.

Ukraine was completely defenceless which Russia knew of course, because it transferred all its nuclear weapons to them in exchange for security.

I'm not so sure Plenty of top brass believe our biggest threats are best countered by spending in other areas. A view shared y most of our intelligence & security services. It costs £2 billion a year just to maintain it ffs.

The cost of the four new Dreadnought Class ballistic submarine is likely going to be up to £100 billion. For the same money the UK could have another 8 to 10 attack submarines (SSNs) or a mix of conventional and nuclear boats and 15 to 20 extra frigates. Then there's spending on intelligence and technology defenses, things which are what are actually keeping us safer.

@Hatfullofwillow it would be a seriously bad idea to scrap Trident.

I think they will hit everybody. They have already gone after pensioners, and high rate tax payers will be an easy target. Maybe changing the UC rules so that it’s not beneficial in some cases to work less hours to keep UC?

Definitely capital gains. Maybe alcohol and tobacco?