Tax rises totaling £40 billion are planned, according to Ms. Reeves. From next April, increases will affect Employers’ National Insurance contributions (NICs) and Capital Gains Tax rates. Inheritance Tax will start applying to inherited pensions in April 2027, with reforms also coming for reliefs on agricultural and business asset transfers. VAT will now apply to private school fees, and the tax status for individuals domiciled outside the UK will be removed, the Chancellor confirmed.
To protect living standards, Ms. Reeves pledged to end the freeze on Income Tax and employee NIC thresholds in 2028, while also extending the Fuel Duty reduction for an additional year. Promising a “national renewal” spanning a decade, the Chancellor emphasized greater funding for both the NHS and schools, along with new spending for housing, transportation, and the aerospace and automotive industries.
