Connect with us

Hi, what are you looking for?

Captain Of Success
Top Stories

Finance

Think tank urges Labour to consider inheritance and road pricing in budget proposals

The Resolution Foundation has recommended that Rachel Reeves consider significant tax changes in the upcoming Budget, including increases to inheritance and capital gains taxes, to address the rising fiscal challenges faced by the government.

The think tank’s report suggests that scrapping inheritance tax reliefs for agricultural property and business assets could generate £2 billion annually. Additionally, aligning capital gains tax rates more closely with those charged on dividends and wages could bring in an estimated £8 billion per year. These measures aim to boost Treasury coffers as part of broader fiscal reforms under Labour’s leadership.

The Resolution Foundation has also proposed the introduction of road pricing, potentially charging drivers 6p per mile plus VAT, as a replacement for the dwindling revenue from fuel duty. With the transition to electric vehicles reducing income from traditional fuel taxes, this measure could help sustain critical infrastructure funding.

However, the think tank also flagged the need for targeted tax cuts, particularly concerning stamp duty. The threshold for stamp duty on property transactions is set to drop from £250,000 to £125,000 in April 2025, effectively increasing the tax burden on buyers of a £250,000 home by £6,250. The Foundation criticised this as an economically inefficient way of raising revenue, arguing that it could hinder the effective use of the UK’s housing stock.

A Treasury spokesman commented on the recommendations, noting: “Following the spending audit, the Chancellor has been clear that difficult decisions lie ahead on spending, welfare and tax to fix the foundations of our economy and address the £22 billion hole the Government has inherited. Decisions on how to do that will be taken at the Budget in the round.”

    You May Also Like

    Stock Markets

    RUELLE CANINO (left) and GM Janelle Mae Frayna (right) — PHILSTAR FILE PHOTO BUDAPEST, Hungary — GM Janelle Mae Frayna and wonder girl Ruelle...

    Stock Markets

    RUELLE CANINO (left) and GM Janelle Mae Frayna (right) — PHILSTAR FILE PHOTO BUDAPEST, Hungary — GM Janelle Mae Frayna and wonder girl Ruelle...

    Stock Markets

    RUELLE CANINO (left) and GM Janelle Mae Frayna (right) — PHILSTAR FILE PHOTO BUDAPEST, Hungary — GM Janelle Mae Frayna and wonder girl Ruelle...

    Stock Markets

    RUELLE CANINO (left) and GM Janelle Mae Frayna (right) — PHILSTAR FILE PHOTO BUDAPEST, Hungary — GM Janelle Mae Frayna and wonder girl Ruelle...

    Disclaimer: CaptainOfSuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 Captain Of Success. All Rights Reserved.