When will Burnham bring his whole self to work?
There have been relatively few Budget leaks ahead of next week’s fiscal event but the little we have been able to discern, while still technically in the realms of speculation, has been depressing. The latest suggestion – that people handing over the reins of a family business to the next generation could be hit with [...]
As the upcoming fiscal event looms on the horizon, little concrete information has been leaked, leaving speculation running rampant. One such rumor suggests that transferring a family business to the next generation could trigger a massive tax bill, a notion so far-fetched it's unlikely to survive the "no idea's too crazy" brainstorming sessions within the Treasury.
Various interest groups have been advocating for or against different changes, with the main business organizations rallying behind a "please do no harm" approach, with some pushing for reduced costs and easier hiring of young workers. The City's stance against a potential tax on banks was commendable, but it appears they'll likely face considerable repercussions.
Burnham and Healey seem eager for additional revenue, but their desperate measures may lead them down perilous paths, potentially including an assault on the financial sector's towering Canary Wharf buildings in order to provide breathing room to struggling downtown businesses. To be fair, Burnham and Healey don't seem inclined towards broad-scale wealth taxes, but their urgency for extra funds is steering them in a risky direction.
For inspiration regarding the Budget, the Prime Minister might want to take a look at the alternative Budget published recently by the Institute of Economic Affairs. While the proposed policies may be met with skepticism due to their radical free-market ideas, they are certainly bold and should be given a fair hearing. The think-tank advocates for significant VAT increases across numerous goods and services currently enjoying exemptions or reduced rates, with the aim of shifting taxation from transactions to consumption.
This revenue could potentially be used to abolish Stamp Duty and Inheritance Tax. The document also proposes substantial reforms to welfare spending and income tax, including some dynamic and progressive changes. Interestingly, they also call for the scrapping of the Bank Levy and Bank Surcharge. Unions, however, might have a different opinion.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.