UK Income Tax and the 2025 Budget: Did She or Didn’t She ?
As a follow-up to the budget, and my recent pre-budget blog on the likelihood of Income Tax rises, I’ve tried to answer the simple question in the title i.e. Did Labour break their manifesto promises by raising the rate of one of the 3 main taxes – i.e. Income Tax, NI or VAT ? The short answer to this question is...Yes, they did, despite their protestations to the contrary. Read on to find out why..... November' budget was a complex affair, and seemed almost to be designed to confuse. It was widely anticipated by industry and the general population as a "death by a thousand taxes", and certainly lived up to the prediction. Much was made of sticking to manifesto promises, almost to the point of obsession by the Party, in the weeks before the budget, to the extent that Reeves was eventually forced to 'chicken out' of her planned 2p across the board rises in direct tax on income in order to head off a widely anticipated rebellion by her 'unruly' back...