Chancellor Rachel Reeve is plotting a dozen tax rises in tomorrow’s Budget as she tries to repair Britain’s dire public finances. The “smorgasbord” of tax hikes is expected to include a raid on pension contributions, a gambling tax, a tourism tax and a pay-per-mile charge on electric cars.
The Chancellor is likely to extend the freeze on income tax thresholds to 2030, a phenomenon known as fiscal drag, which is expected to raise the Treasury £8.3bn. Reeve is anticipated to unveil a package of up to £30bn in tax rises and spending cuts on Wednesday. It comes after a record £40bn tax raising maiden Budget last October.
Ms Reeve will also confirm that she is retaining the 5p cut in fuel duty, according to The Times. Continuing the relief for another year is estimated to cost the Exchequer £3bn.
In an attempt to lower household energy costs Ms Reeve is expected to remove several green levies currently levied on bills. Labour has pledged to cut energy bills by £170 by the end of the parliament. However, net zero levies backed by Ed Miliband, the energy secretary, are increasing household costs. The removal of green levies is likely to be funded by reducing the government’s £13bn Warm Homes Fund, which is used for energy efficiency measures.