Two-Thirds of Britons Expect Tax Hikes in Upcoming Budget, Poll Finds

Two-thirds of Britons anticipate that the Labour government will raise taxes during Chancellor John Healey's upcoming Budget, according to a new poll by Ipsos. This expectation comes as a significant majority, 58 percent, believe the country is heading in the wrong direction, with only 18 percent expressing optimism.

Ipsos described the upcoming Budget on October 28 as a "critical test" for Chancellor Healey, noting that public optimism about the economy remains "stubbornly subdued by historic standards." The poll found that 65 percent of Britons expect tax increases, while a mere five percent anticipate a reduction.

These predictions emerge even as the Labour government has already raised the tax burden to a post-war high. Former Chancellor Rachel Reeves increased taxes by £75 billion over the previous two Budgets. Reports suggest potential further tax measures could target banks, capital gains, and bookmakers.

Furthermore, the Ipsos poll revealed that 51 percent of the public expect an increase in government borrowing following the Budget. Nearly a third believe Labour will increase spending on public services, and 30 percent anticipate an increase in welfare spending. Conversely, 28 percent of the public expect Labour to reduce welfare spending, despite forecasts indicating the welfare bill could 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 parallel, research commissioned by UNISON, a Labour union backer, and conducted by YouGov, suggests a segment of the public supports higher taxes on the wealthy, banks, and large corporations to fund public services. This separate poll found that 69 percent of respondents favor increasing taxes on the wealthiest, 75 percent believe large corporations should contribute more, and 61 percent support tax hikes for banks.

UNISON general secretary Andrea Egan expressed encouragement regarding potential tax increases 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."