Voters Favor Tax Cuts Over Public Spending, Poll Indicates

Nearly half of voters in Great Britain now believe the government should prioritize cutting taxes over investing in public services, a notable shift from previous public sentiment, according to new polling by More in Common. The survey found that 49% of respondents favor prioritizing tax cuts, while 36% would prefer ministers to invest more in public services. This marks a reversal from September 2024, when more than half of voters (54%) favored prioritizing public services, with only 30% choosing tax cuts.

Luke Tryl, director of More in Common, identified the "squeezed middle" as the driving force behind this change. He noted that two years into the current Labour government's term, there has been a discernible shift in public preference when presented with a choice between tax cuts and investment in services. While support for tax cuts is particularly strong among Conservative and Reform UK supporters, even Liberal Democrat voters are divided equally between the two options.

For those "just about managing" with the cost of living, the prioritization has also flipped. In September 2024, 53% of this demographic favored investing in public services over tax cuts (31%). However, the latest polling shows 53% now prioritize lower taxes, with 32% favoring investment in public services.

The poll, conducted from October 16-19 among 3,069 adults, also revealed specific tax cuts voters would most like to see. Council tax leads the list, with 31% of respondents wanting it reduced. This is followed by raising the tax-free personal allowance (28%) and cutting fuel duty (24%).

While general tax increases are unpopular, the poll suggests that taxing vape shops and energy companies would be the most palatable new measures. A levy on banks and a 1% wealth tax on assets exceeding £10 million also garnered support.

Separately, the polling indicated a growing desire for increased government spending on defense, a priority that has risen since 2024. However, voters appear to oppose breaking manifesto pledges on taxes to fund this, instead favoring cuts to benefits as an alternative.

Chancellor John Healey is set to deliver his first budget on Wednesday amidst a challenging economic climate, exacerbated by international market turmoil linked to the Iran war. His fiscal room for significant spending is limited. He is reportedly considering an increase in the surcharge on bank profits, from 3% to 8%, to help address a £4.7 billion deficit in the UK's defense investment plan. This plan, initially announced by former Prime Minister Sir Keir Starmer, promised an additional £15 billion for the defense sector but only committed £10.3 billion, leaving the remaining amount for Healey to secure.