From Morningstar: 2024-10-15 06:47:00

Rachel Reeves warned that the October 30 Budget would be tough, signaling a possible hike in national insurance for businesses. Labour manifesto’s commitment not to increase national insurance relates to employee taxes, not employer contributions. Reeves assured long-term tax certainty for businesses to encourage UK investment despite forthcoming tax increases.

At the International Investment Summit, the Chancellor stated that over £60 billion in deals shows the UK is open for business. Potential tax changes in the Budget include Inheritance Tax, Capital Gains Tax, and Pension Rules. Reeves emphasized that stable fiscal policies are necessary to attract investment and announced plans for a business tax road-map.

Reeves stressed a need to close the UK’s financial gap and balance day-to-day spending through tax receipts to ensure fiscal stability. Difficult decisions on taxation may be necessary to achieve economic stability and attract business investment. One measure to address the financial gap is scrapping winter fuel payments for pensioners not on pension credit.

Reeves assured a partnership with the government to boost growth for big businesses, announcing the transformation of the UK Infrastructure Bank into the National Wealth Fund. The NWF, with £27.8 billion, aims to invest in clean energy and growth industries, catalyzing private investment. A new British Growth Partnership within the British Business Bank will facilitate long-term investments.

Encouraging British pension funds to invest more in the UK is a key goal of the new government, aiming to boost growth and attract private investment. The government seeks to ensure fiscal stability, attract business investment, and create lasting economic growth through stable financial policies and long-term investment strategies.



Read more at Morningstar: Chancellor Rachel Reeves Warns of Difficult Budget