Labour’s Budget revenue options without tax hikes — 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 banks 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 while 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 recover up to £1bn in lost revenue from non-compliant overseas and shell retailers.
- Welfare spending is under pressure for cuts, especially in working-age and disability benefits, though Labour previously reversed plans for £5bn in savings due to internal party resistance.
- John Healey must navigate Labour’s manifesto promise not to raise income tax, VAT, or National Insurance while restoring fiscal headroom now estimated at as low as £11bn.
Why it matters: The Treasury faces a £13bn shortfall in fiscal headroom compared to six months ago, yet cannot rely on major tax hikes or deep welfare cuts without political fallout. Each revenue option risks economic pushback or voter backlash, limiting viable paths to meet fiscal targets.
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