Autumn Budget 2024: How “Painful” Will It Be?

The Chancellor, Rachel Reeves, will present the first budget of the new parliament on 30 October 2024 laying out the fiscal plans for the Labour government. The Prime Minister has already warned that this budget will be “painful” but just how painful will it be? In this video, I look at the options open to them and discuss what I think the most likely outcome may be.

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Timestamps
00:00 Introduction
00:30 Why Does The Budget Matter?
01:56 What Problems Does The UK Face?
04:07 What We Know So Far
07:36 What Might Change
07:52 Capital Gains Tax
10:24 Inheritance Tax
12:09 Council Tax/Stamp Duty
14:31 Pensions
15:48 New Taxes
17:23 Fuel Duty
18:35 ISAs
19:52 Conclusion

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DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.

[MARTINA-gctq]

Apparently they aren’t going to tax gifts to politicians.

[gavinbradbury]

Already bricking some of my windows up, in case they bring that one back!!!

[captainnemo]

Council tax is becoming another large bill like the mortgage payment.

[roly]

it is quite easy to forget what the purposes of the taxes were originally for. Council Tax is should not be about the value of the house, but for the services the council needs to provide. i live in the countryside and the only service we have used or seen so far is having the bins collected every 2 weeks. i know this is an over simplification, by de-linking these taxes from the original purpose enables irresponsible politicians to collect more and more without recourse.

[jaaguitar]

14:10 but those larger houses aren't using 3x the council bin services etc.

[the_rational_thinker_]

CGT should come with an inflation tax relief deduction. Otherwise the gain is not realisable. If the government causes double digit inflation for a few years then collects 40% CGT they are basically stealing, or applying a wealth tax.

[DomS]

The people of the UK don’t need any more pain. Everything you buy is taxed to high heaven. These governments needs to stop wasting tax payers money on helping others who aren’t from the UK, the people here have paid into the system their whole lives yet the government are more happy to give it away rather than helping out our own.

Also the whole 30% flat rate tax relief is a nonsense. What if you are salary sacrifice at a higher rate? Are you going to have to pay back the additional 10%?

Those who voted in this Labour lot will regret it shortly I think

[edc]

The problem with CGT is no allowance for inflation.

[gixxer]

What impact is the biggest (stealth) tax having? I.e. freezing the current tax bands until 2028. Nobody seems to ever talk about this extra tax generated

[captainnemo]

'They'll tax the air we breathe next!' Oh right, they've already done that😠

[pauls]

So much focus on extracting more money from workers and no thought to reducing government spending. I think the people should impose their own budget on government spending!

[bobdigi]

Basically even higher taxes and more austerity under a different name. If i was rich I'd be out of here. Low growth and short term thinking has landed us here. If we had a government willing to focus on the next 50 years rather than the next election id have some confidence things might improve. But we are where we are!

[george]

The tax burden is already too heavy. Tax increases will stretch household budgets even further. Soon, we will no longer afford food.

Thanks much for this video, I've never been so stressed over a budget

[andyyu]

I am taking no chances and have taken / will take a number of avoidance actions:
- in case tax allowance is withdrawn for stocks and shares ISAs, switched my ISA investments (e.g. sell Vanguard UK all share index, buy HSBC all share index) so that they are treated as a disposal for CGT purposes; hopefully any retrospective changes will be judicial reviewed
- salary sacrificing as much as possible into my pension
- make sure that the tank and all petrol cans will be full on budget day
- would have crystallised my pension (i.e. taken the 25% tax free lump sum) but still have a few years to go

To be honest, if I was 15-20 years younger, I would be seriously contemplating moving to another country. This country has gone to the dogs, sadly.

[davidcalvert-smith]

Black hole or not - surely enough money is already being collected.

Spending 44.7% of GDP is way too much! Why is this never spoken about!? We should as a country agree on an acceptance (peacetime) figure as a percentage of income and not allow it to be exceeded. This is getting out of control!!!

[FoobsTon]

How much of all this was included in their manifesto?

[philipjamesparsons]

I do worry that whatever this government does, it will have not been thought through. Max problems for minimum gain like Winter Fuel payments. Many of these taxes are as they are because the previous government did not dare raise them. There is no big tax revenue windfall in any of them.

[MrHotrod]

Balanced and insightful as ever Ramin, many thanks.

[Nicko-fl]

Deeply concerned by the up coming budget. Think many will move abroad, including my family