Labour weighs bank tax, gambling hikes, online VAT for Budget revenue — SkimNews
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- Banks could face a surcharge increase on corporation tax from 3% to 5.5%, potentially raising £1bn–£2bn annually, with bank leaders warning it may deter investment and affect savers through lower returns.
- Gambling machines in betting shops and adult gaming centres may see their tax doubled from 20% to 40%, a move estimated to raise £275m–£460m but risking closures and job losses in bookmaking and horse racing.
- Online marketplaces like Amazon, eBay, and Temu are expected to be made responsible for collecting VAT on third-party sales, aiming to close a £12bn tax gap and raise up to £1bn per year.
- Welfare spending is under scrutiny for cuts, especially to working-age benefits, though Labour previously reversed a £5bn reduction plan due to internal party resistance and concerns about pushing people into poverty.
- Treasury estimates the government’s fiscal headroom has halved from £24bn to £11bn due to higher borrowing costs, increasing pressure to find new revenue ahead of the Budget.
Why it matters: Labour must reconcile its pledge not to raise core taxes with a shrinking fiscal buffer and rising spending demands. Raising bank or gambling taxes or enforcing online VAT could generate up to £3.5bn annually—still far short of the sums needed—while welfare cuts risk political backlash and deeper poverty without upfront investment in job support.
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