Four ways Labour could raise money in the Budget without hiking income tax
Chancellor John Healey may need to raise money to boost his fiscal headroom - BBC Verify examines what options could be on the table.
The upcoming Budget may explore four potential avenues for raising additional revenue without resorting to income tax increases. One option under consideration is raising the surcharge that banks pay on corporation tax, from the current 3% to 5.5%. This could potentially generate £1bn to £2bn annually for the Treasury, although banks may pass some of the tax burden onto customers through lower savings rates or higher borrowing costs.
Another possibility is increasing taxes on electronic gaming machines, such as those found in betting shops, from their current 20% rate to 40%. This could raise between £275m and £460m, depending on how gamblers react to the hike. Online marketplaces like Amazon, eBay, and Temu could also be tasked with collecting VAT owed by retailers, potentially netting an extra £1bn per year.
Finally, the government is considering making big online marketplaces responsible for collecting tax owed by retailers selling on their platforms, as they are currently missing out on about £12bn a year in VAT revenues.
Written by urgent.news from BBC Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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