Wise words indeed but probably not a sentiment shared by Keir Starmer today as he warned “there is a Budget coming in October and it’s going to be painful”. With a reported £22Bn black hole to fill it looks certain that taxes will now increase in the forthcoming Budget scheduled for 30th October 2024.
As he delivered his speech in the Downing Street rose garden the UK’s new Prime Minister made it clear that difficult decisions will need to be made and that the country had to “accept short term pain for long term good” but he had been left with little choice following years of Conservative rule. Today’s full speech is produced in the link below:
Sadly the lack of rose tinted glasses didn’t get a mention as his speech writers missed the opportunity to reference the other big news of the day.
The new Labour government has been quick to make announcements on VAT for private school fees, non-doms and carried-interest. Having already committed to not increase income tax, national insurance or VAT by promising to not raise taxes on working people there appeared to be little wriggle room to push the tax burden higher. However, it looks increasingly likely that taxes will now rise further with pensions taxation, inheritance tax and capital gains taxes already being identified as potential targets. There is also increased speculation that employer’s national insurance contributions could also rise, with business leaders quick to raise concerns that growth and the economy could be impacted.
The main announcements released to date can be found here:
The Prime Minister was clear to emphasise “those with the broadest shoulders should bear the heaviest burden”, as such the asset management industry is unlikely to escape unscathed. To keep up to date on all the latest announcements and receive a copy of our post Budget summary please subscribe to our mailing list or reach out to us directly.