Brits Expect Tax Hikes as Labour Faces Budget Test
A new poll indicates that a significant majority of the British public anticipates tax increases in the upcoming Budget, signaling a crucial moment for Chancellor John Healey.
Nearly two-thirds of Britons predict that the Labour party will raise taxes during Chancellor John Healey's first Budget next week, according to a recent poll by Ipsos. The survey also revealed that 58 percent of the public believes the country is heading in the "wrong direction," with only 18 percent expressing optimism.
The Ipsos research suggests that the upcoming Budget on October 28 will be a "critical test" for Chancellor Healey, as public economic optimism remains low. Sixty-five percent of Britons expect tax increases, while a mere five percent anticipate tax cuts. This sentiment arises despite Labour having already increased the tax burden to a post-war high under former Chancellor Rachel Reeves, who raised taxes by £75 billion over her previous two Budgets.
Reports indicate that the government is considering further revenue-raising measures, with potential targets including banks, capital gains tax, and bookmakers. The poll also found that 51 percent of the public expects government borrowing to increase post-Budget, and nearly a third anticipate increased spending on public services. Additionally, 30 percent of Britons believe Labour will raise welfare spending, though a separate 28 percent expect a reduction, despite the welfare bill being forecast to reach £400 billion by the end of the decade.
Alex Bogdan, research director at Ipsos, commented on the findings, stating, "Our latest insights reveal an electorate that is acutely conscious of the tightrope Chancellor John Healey must walk when it comes to the Budget, as they themselves are facing economic anxieties and difficult trade-offs when we ask about their own household budgets." She added, "Public judgment can be swift, and with 65 per cent of the public now expecting tax rises, it is clear is that the upcoming Budget could serve as a critical test for the Government when it comes to public opinion and political fortunes for the year ahead."
In contrast, a separate poll commissioned by UNISON, a Labour union affiliate, suggests public support for increased taxes on the wealthy, banks, and large businesses. This YouGov-conducted research found that 69 percent of people favor raising taxes on the wealthiest to fund public services, 75 percent believe large corporations should contribute more, and 61 percent support higher taxes for banks. UNISON general secretary Andrea Egan expressed encouragement at reports that Healey is considering increasing taxes on the banking sector, stating, "Massive investment to rebuild public services and restore wages is urgently needed. It should be paid for by taxing the wealthiest. These are common sense policies, backed by a large majority of the public."