Prime Minister Assures Economic Growth Goal Will Not Be Compromised by October Budget
Labour has pledged to close loopholes for various taxpayer groups to increase revenue for the Treasury.
Prime Minister Sir Keir Starmer has promised that the Autumn Budget, expected to include tax hikes and spending cuts, will not hinder economic growth.
During his trip to Italy, Starmer emphasized the importance of economic stability in fostering growth.
“If it promotes economic growth, it’s a ‘Yes’; if it inhibits economic growth, then it’s a ‘No.’ Stability is crucial for economic growth, and we need to make tough decisions now,” the prime minister stated.
These remarks precede the budget statement on October 30, with Labour cautioning that the upcoming budget will be challenging due to a projected £22 billion shortfall in public finances.
Starmer affirmed that addressing this deficit is vital for economic stability, and all decisions will be made with an eye towards fostering economic growth.
Chancellor Rachel Reeves is expected to introduce tax changes aimed at boosting Treasury revenue.
The OBR stressed that enhancing economic growth could have the most significant impact on reducing national debt.
Closing Loopholes
In the coming Parliamentary term, Labour aims to decrease debt relative to the economy.
The government plans to generate £2.6 billion over five years, starting with an initial £1 billion, by addressing loopholes in the tax status of UK resident non-domiciled individuals.
Additionally, Labour aims to expand the range of tax schemes reported to HMRC under the disclosure of tax avoidance schemes regime.
Capital Gains Tax (CGT) is imposed on profits from asset sales at a lower rate than income tax, making it an attractive revenue source for the Treasury. Different CGT rates apply based on income levels.
