The Labour party promised not to raise taxes on "working people," including VAT, income tax, and National Insurance. However, their comments on "difficult decisions" have sparked speculation about potential tax increases.

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Check the upcoming points for insights on rumoured changes!

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National Insurance contributions by employers

The prime minister and the chancellor have both refused to rule out an increase in employer NI payments.

Reeves has said Labour's election pledge related to the employee element.

Employers currently pay NI on their workers' earnings at a rate of 13.8%.

At the moment companies do not pay NI on pension contributions they make for staff, but reports have suggested this could change.

Businesses have argued that raising NI for employers will make it harder to hire staff and create jobs.

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Capital gains tax (CGT)

CGT, is charged on the profit made from the sale of assets that have increased in value, such as second homes or investments.

It is paid by individuals and some business owners, and the rates vary depending on how much income tax you pay.

For higher earners, the levy is currently 24% on gains from selling additional property, or 20% on profits from other assets like shares.

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There has been speculation that rate could be increased in the Budget, although the prime minister appeared to dismiss suggestions that it could rise as high as 39%.

Some argue CGT rates should rise as they are lower than income tax and therefore benefit the wealthy. Others say that raising the rates will hit Labour's plans to grow the economy.

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Pension taxation

There are various ways the chancellor could raise more money by changing the way private pensions are taxed.

That could include reducing the cap on tax-free lump sums from pension pots, cutting the tax break for employers putting money into employees' pensions, or changing the system of tax relief on pension contributions.

At the moment, savers receive tax relief at the same rate as their income tax - so basic rate taxpayers get tax relief at 20% and higher rate taxpayers at 40% or 45%.

The government could introduce a single flat rate of relief which would make the system less generous for higher earners, although reports have suggested this is now an unlikely move.

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Inheritance Tax

IHT, which is currently 40%, is usually paid on the value of a deceased person's assets above a threshold of £325,000.

The tax includes a series of exemptions, and it is thought changes to a number of these are under consideration in order to raise more money.

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Stamp duty

Stamp Duty Land Tax is a tax due if you buy a property or land over a certain price in England and Northern Ireland.

In 2022, the rate at which people would start to pay the tax was increased from £125,000 to £250,000, and for first-time buyers it rose from £300,000 to £450,000.

However, the increase in these thresholds was only due to last until March 2025 after which they will revert to the original levels. Labour has not committed to extending the thresholds at the higher rates.

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‍Non-dom tax status

The term "non-dom" describes a UK resident whose permanent home - or domicile - for tax purposes is outside the UK. As a result, they do not pay UK tax on money they make elsewhere.

In the March Budget, the then-Chancellor Jeremy Hunt said non-dom tax status would be abolished, although there were some concessions.

Labour has said it wants to toughen the existing plans, although these plans might be reconsidered amid worries they could bring in less money than expected.

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Fuel duty

Fuel duty has not risen in more than a decade. It was frozen between 2012 and 2022, and cut by 5p in March 2022 when pump prices surged following Russia's invasion of Ukraine.

However, some motoring groups argue the cut was never passed on to motorists and the RAC says it could be reversed.

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What has already been announced?

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Winter fuel payments

The government has said future payments will only be made to those getting pension credit or other means-tested help.

The plans have been criticised by some MPs, unions and charities.

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State pension

The state pension is set to rise by 4% in April 2025.

The increase will be confirmed by Work and Pensions Secretary Liz Kendall around the time of the Budget.

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VAT on private schools

The government has said VAT will be added to private school fees from 1 January.

Some private schools will lose business rates relief.

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Energy windfall tax

The government is increasing the windfall tax on the profits oil and gas firms make in the UK. The energy profits levy is due to rise to 38% from 35% on 1 November, external, and will remain in place until 31 March 2030.

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Follow our blogs for an update next week once the update is announced, and if you have any questions following the budget announcement please get in touch!