UK Rachel Reeves Pensions Tax Raid Sparks Outrage Among Older Brits

[CharlieH]

An economist warned tax raises are inevitable due to the "chronically weak condition" of public finances with a an estimated black hole of up to £51 billion.

 

Financial expert warns tax hikes are on the horizon as UK faces massive deficit.

Chancellor Rachel Reeves is reportedly planning a "pensions tax raid" to address a significant £51 billion shortfall in the UK’s public finances. As the autumn budget looms, experts predict the Chancellor may need to implement tax increases or spending cuts to manage government u-turns, including changes to the welfare bill.

 

Economist Elliott Jordan-Doak from Pantheon Macroeconomics suggests that tax hikes are now inevitable. Describing the state of the public finances as "chronically weak," he foresees possible new levies on pensions as essential for adhering to fiscal rules. He commented, "The big picture remains that the public finances are in a fragile condition. Stealth taxes, duty increases, and a pensions tax raid may be unavoidable if the Chancellor aims to keep headline tax rates unchanged."

 

Positive news from official figures released in July showed government borrowing slowed to £1.1 billion—a £2.3 billion decrease from the previous year, marking the lowest July borrowing figure in three years. Despite this, the National Institute of Economic and Social Research warned of a looming fiscal gap, with an estimated £51 billion deficit.

 

To address this, the government is considering measures such as overhauling capital gains tax on high-value homes and adjusting stamp duty on property sales. These explorations come as increases in income tax, national insurance, and VAT have been ruled out, limiting Reeves’ options for addressing the budget shortfall.

 

Critics argue that imminent tax hikes could significantly impact homeowners and retirees as the government seeks ways to balance the budget without raising prominent taxes. This has sparked warnings about the potential consequences on older Britons if pensions become a target for additional revenue.

 

The financial strategy has raised concerns, with some experts cautioning that focusing on alternative tax avenues like pensions could place undue burden on certain demographics. The challenge lies in addressing economic pressures without deepening financial strain on the public.

 

As the budget discussions progress, the balance between fiscal responsibility and public impact is at the forefront of government strategy. Reeves faces the tough task of navigating economic recovery while ensuring that policies do not disproportionately affect vulnerable groups.

 

In light of these challenges, experts and policymakers alike are watching closely to see how Reeves’ decisions in the upcoming budget will impact the broader economic landscape.

 

 

  Adapted by ASEAN Now from The Express 2025-08-22

 

 

[The Cyclist]

Gordon Brown Mk 2

 

Raid Pensions

 

PFI on steroids, this re-named as PPP
 

Sell the UK's Gold reserves on the quiet, and the cheap.

 

Meanwhile National debt has increased by £187 Billion since Labour came to power.

 

At least Gordon Brown had 1 memorable act as Chancellor, he kept the UK out of the €.

 

What memorable act will Reeves be remembered for, resigning I would suggest.

[James105]

3 hours ago, CharlieH said:

To address this, the government is considering measures such as overhauling capital gains tax on high-value homes and adjusting stamp duty on property sales.

 

Absolute morons.  Zero thought into how much money they are spaffing away on foreign projects and the benefits bill, public sector pensions etc and looking now to collapse the property market.  Just how many people will sell their primary residences to (perhaps) downsize if faced with a 20% tax bill when it is as clear as day this is a one term government?  Zero, that's how many as they will simply wait it out until these clowns are not in power.   So that means less stamp duty will be received and a lower tax intake exasperating the problems they have already caused.  Good for Reform though as a quick win will be to immediately reverse this nonsense on day one and bask in the glow of the property boom that follows.