As had been widely predicted, the results at the polls have seen the Labour Party back in power after 14 years in opposition. Labour have swept into power with their second-largest majority whilst the Conservative Party have had their worst ever result in terms of the number of seats won.
We should expect Labour to fulfil their election pledges and make their reported tax changes that were included in their manifesto.
These changes, which Labour say will make the tax system fairer include the following:
- Ending tax breaks for private schools, which exempt them from VAT and business rates.
- Closing the loopholes which allow some ‘non-dom’ mega rich people who live in the UK to avoid paying tax.
- Introducing a proper windfall tax on the huge profits of the energy giants.
But the new government has pledged not to increase National Insurance, VAT or Income Tax.
The new Chancellor, Rachel Reeves was formally appointed on 5 July 2024. In her first speech as Chancellor on 8 July 2024, she confirmed that a Budget will be held later this year alongside a forecast from the Office for Budget Responsibility. The government must provide the Office of Budget Responsibility (OBR) with 10 weeks’ notice meaning that the Budget will not take place before mid-September.