Transport Secretary Heidi Alexander has emphasised that “fairness” will guide the government’s approach to taxation in the upcoming autumn Budget. Speaking on Sky , she stopped short of ruling out a wealth tax, though acknowledged it wasn’t discussed “directly” at a recent cabinet retreat at Chequers YouTubeYouTube+6The Times+6The Sun+6.
Advocates of a wealth tax—among them unions, MPs, and former Labour leader Lord Kinnock—have called for levies on unearned income, including savings, property, and investments. While Alexander said the government remains committed to protecting those on modest incomes, she indicated that Chancellor Rachel Reeves will be guided the Office for Budget Responsibility’s forecasts and strict fiscal rules when drafting the Budget The Independent+3The Times+3The Sun+3.
Economic pressures are mounting: high borrowing costs, a costly winter fuel payment reversal (£1.25 billion), and abandoned welfare reform savings (£5 billion) have eaten into roughly £9.9 billion in Chancellor Reeves’s fiscal headroom The Times.
Conservatives criticized Alexander’s comments. Shadow Home Secretary Chris Philp accused her of hinting at impending tax rises, blaming Labour’s economic mismanagement and suggesting that “working people and businesses” will shoulder the fallout Yahoo +6The Times+6The Independent+6.
Summary of key points:
- Wealth tax not ruled out – Alexander acknowledged pressure for a new levy but said it wasn’t directly on the table at Chequers.
- Fairness first – Any tax changes will reflect what’s deemed equitable, with no intention to increase tax for those on modest incomes.
- Economic squeeze – Rising costs and shrinking fiscal space may force the Chancellor’s hand in the autumn Budget.
- Opposition reaction – Conservatives warn that “fairness” may be a prelude to hidden tax hikes affecting workers and small businesses.
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