Budget 2026: Which taxes will Burnham and Healey hike?
With interest rates on course to remain elevated and a new government keen to win over sceptical voters with cost-of-living measures, economists think tax rises at October’s Budget are all but guaranteed. But where will the new Chancellor look for revenue? Ali Lyon and Mauricio Alencar examine the most likely revenue raisers. Speak to any [...]
As the new Chancellor, John Healey faces a complex fiscal landscape, with his budget promises at odds with his predecessor's fiscal rules. The Treasury's headroom is limited, and the government's spending commitments, especially in defence and welfare, constrain his options. Despite this, economists predict that tax increases will be the primary solution to the budget deficit.
Healey and his team are expected to focus on raising revenue through tax hikes. One possibility is expanding the higher levies on expensive homes, such as stamp duty and council tax, while introducing an annual land value tax (LVT). Another option is to equalize capital gains tax rates with income tax rates, although this could be controversial.
The government may also consider cracking down on vape shops, online sales, and warehouse business rates.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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