After the Office for Budget Responsibility accidentally published the fiscal report two hours earlier than expected, we were able to follow along with Rachel Reeves’s changes as they were announced.
Many of the measures were widely predicted and some we had expected to see didn’t materialise.
These measures are expected to raise around £26 billion in new taxes by 2029/30 and increasing the government’s fiscal headroom to £22 billion. Headroom is the ability to spend or cut taxes without borrowing.
Despite the speculation, this budget was not so much about immediate cuts or giveaways but instead a reshaping of taxation and incentives.
We were warned that HMRC will be given more powers to prevent and track down unpaid taxes particularly in relation to tax avoidance schemes.
Katy Veevers
Dominic Hill Accountants
