Labour’s £40bn tax increase in Autumn Budget | LBC analysis

Rachel Reeves has announced £40bn in tax rises as part of the autumn Budget, with the Chancellor hiking employers' National Insurance contributions, freezing fuel duty and raising the minimum wage.

Reeves' 2024 Budget - key points at a glance:

- Employers' NI contributions raised by 1.2% to 15%
- Freeze to Fuel Duty
- 1p off a pint at the pub
- National Living Wage to increase from £11.44 an hour to £12.21
- Carer's weekly earnings limit to rise from £151 to £181
- £22.6bn for NHS day-to-day operations
- Lower rate Capital Gains Tax will increase from 10% to 18%

Shelagh Fogarty is joined by Dr Mohamed El-Erian, Chief Economic Advisor at Allianz and Former Deputy Director of the IMF, now President of Queens College, University of Cambridge.

He says the markets will react with both belief and relief as a step towards higher growth as borrowing costs have come down.

#shelaghfogarty #autumnbudget #ukpolitics #labour #budget #LBC

LBC is the home of live debate around news and current affairs in the UK.

[catherinemartin]

I don’t mind paying more tax if we get our vital services back on track

[joni]

As long as the tax loopholes are closed and the richest pay the same as ordinary working people instead of being allowed to dodge it.

[paulohalloran]

😂 - Sunak talking about COVID and Ukraine as to why the UK has less buying power but Zero mention of Brexit which devalued the pound and has made it massively difficult for British businesses to do business with it's biggest market.

[gmonster]

I love how the main stream media is hanging their hat on "40bn in tax increases".

The taxes increased affect mostly the people that have broad enough shoulders to weather these costs.

[KimSE]

From what I've seen it seems sensible, on the whole. I do think people will be very put out if they don't see an improvement in their lives in the next 4 years. It doesn't have to be huge or in every area, but a direction of travel needs to be felt.

[BigNate]

Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments..

[jamessteel]

Exactly what is needed to fix the mess the Tories left the economy in, about time the wealthiest had to pay their fair share of taxes.

[abikt]

We need to plug the hole from somewhere. Yes, I'll be worse off, but at least it won't last forever.

[ShindyAdams]

I cant believe i am still hearing sky news lying about the budget, they are honestly priceless.

[wrestleuk]

Brexit is costing the UK economy at least 40 billion a year. Not one word about this economic devastation.

[martinspeer]

As someone on minimum wage I'm very happy. Thank you, Chancellor 😊

[Meshal-xnud]

Wish they increased the cap gains tax further, while slightly reducing the regressive VAT.

[billywiz]

Poor Fogarty not getting the response from this guy that she wanted ha ha

[stardust]

The rich were getting too rich and the poor poorer. Someone had to come and put a stop to this Nonsense.

[alanprice]

Growth, outside Europe, is a pipe dream.

[DebashishChakravarty]

In the last decade number of billionaires in UK has doubled and their wealth has doubled. Sharing the burden is a myth. That wealth is invested in assets and tax havens. That does not create wealth for the country or its people. I wish there was a direct tax for that. There would be investment in public services which is used by 99% people. There would be infrastructure spending. This country is in dire straits in terms of infrastructure against comparable economies. Without physical and digital infrastructure productivity does not improve. This government is trying to address that. There are big challenges with what they are left with.

[lianvandenheever]

How is growth possible with tax increases ?

[gecila]

I'm happy to pay more tax if things are sorted out to be honest, everything is broken, nothing works...

[azizadil]

Growing budget deficit over the years which remains unsolved by consecutive Conservative governments needs to be tackled. It's not the toughest measures anyways, they need to raise tax and they're taxing those who can afford it. The taxes on houses are for those buying 2nd homes for example, which I think won't hurt the people who are on low or middle incomes. Additionally, other increases such as increase in passenger air duty for private air planes, increase in private school VAT, all helps. The wealthiest bracket of the population should be paying more toward the taxation revenue, they certainly earn enough. Furthermore, EMPLOYER's NI contributions have been increased, so to not bear the brunt on majority of workers unless self-employed contractors. Finally, inheritance tax revenue has also been increased, which is great, as there is vast amounts of wealth being passed down from families, it is rightful they pay into the community in the process - that is just common sense and decency.

However, the Labour government has certainly tilted the taxation schemes in the correct way to start reducing the budget deficit, more effective action will likely need to be taken for a more significant impact but let's see what happens.

[nicpaps]

The budget is better than nothing but why aren't the super rich directly targeted. Now we know who rules Britain