Reaction to hinted tax rises ahead of Autumn Budget
Private Wealth and Personal Tax Partners Bina Gayadien and Hilesh Chavda have analysed Chancellor Rachel Reeves’ speech outside Number 11, which has been widely reported as preparing the public for tax increases in the upcoming Autumn Budget.
Speaking with multiple news outlets, Bina Gayadien, Personal Tax and Global Mobility Partner, noted that Reeves’ address signalled a shift toward a tax-raising budget.
“Rachel Reeves prepares the ground for a tax rising budget later this month, potentially breaking pledges set in Labour’s Manifesto. No details were announced today. However, given her fiscal constraints, tax rises for some or all may be bold and unpopular, but necessary according to the Chancellor.”
Bina explained that a VAT increase remains unlikely due to its direct effect on living costs.
“A rise in the VAT rate is unlikely given that it directly impacts the cost of living, but tax increases on capital gains, wealth and pensions are looking more certain. For now, the speculation continues.”
Private Wealth Partner Hilesh Chavda said Reeves’ comments reflect the difficult position the Chancellor faces.
“Rachel Reeves’ speech this morning marks an unusual step, underscoring the challenging position she currently faces. The emphasis on ‘protecting families’ could be more than rhetoric. It may signal significant policy shifts ahead.”
Hilesh suggested that possible measures may go beyond minor adjustments.
“The Chancellor could be signalling changes to Capital Gains Tax, property taxation, and even the introduction of a wealth tax or exit tax. If so, this could represent a major recalibration of fiscal priorities for many.”
Bina and Hilesh were featured by multiple outlets. Read their full comments below:
