Use our income tax calculator above to see how much you should be taking home based on your income under the current tax rules implemented by the former Tory Government
Prime Minister Sir Keir Starmer has made it clear that tax rises are on coming next month as he warned of a “painful” autumn budget.
He warned the nation: “I will be honest with you, there is a budget coming in October and it’s going to be painful. Just as when I responded to the riots, I’ll have to turn to the country and make big asks of you to accept short-term pain for long-term good. The difficult trade-off for the genuine solution.”
However Sir Keir has promised that income tax, VAT and national insurance would not go up. Paving the way for next month’s difficult budget announcement he insisted that Labour’s mission is “to grow the economy” adding that “we have to get away from this idea that the only levers that can be pulled are more taxes, or more spending”.
But while Labour has not explicitly announced tax rises, many experts have argued that the government will have to recoup more cash from British taxpayers to fill what they claim is a £22billion “black hole” in the public finances. Taxes that are rumoured to be touched include Capital Gains Tax and Inheritance Tax – however, nothing has been confirmed. Chancellor Rachel Reeves has said recently that she was “not going to write a Budget two months ahead of delivering it.” The budget will be announced on October 30.
Use our income tax calculator above to see how much you should be taking home based on your income under the current tax rules implemented by the former Tory Government.
The Conservative Party reacted with fury at Sir Keir and Chancellor Rachel Reeves’ plans to raise taxes. Tory leader Rishi Sunak posted on social media: “Keir Starmer’s speech today was the clearest indication of what Labour has been planning to do all along – raise your taxes.”
The Leader of the Opposition also hit out at Labour’s £22billion black hole claims, saying that Labour did know about the state of public finances prior to the general election. Sir Keir has said: “I said change would not happen overnight. When there is a deep rot at the heart of a structure, you can’t just cover it up… you have to overhaul the entire thing, tackle it at root. Even if it’s hard work or takes more time.”