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What to Expect in the November UK Budget — And 5 Tax Hikes Rachel Reeves Might Impose to fill her ‘BLACK HOLE’
As Chancellor Rachel Reeves prepares to unveil the November 2025 UK Budget, all eyes are on her to plug a fiscal black hole of £20–30 billion through tax rises and spending cuts. (Reuters) Despite Labour’s manifesto pledges not to increase income tax, National Insurance (NI), or VAT, Reeves has already hinted that taxes on the wealthy will “be part of the story.” (The Guardian) The Institute for Fiscal Studies warns against a “dash for revenue,” urging her to use smart, targeted reforms. (The Guardian).
Below are 5 likely tax rises she might deploy:
Capital Gains Tax (CGT) Increase or Removal of ReliefsReeves may bring CGT rates closer to income tax levels or abolish favourable reliefs, especially for high-value assets. (The Guardian)
National Insurance on Rental Income / Professional ProfitsApplying NI contributions to landlord earnings or profits from legal firms and consultancies is under consideration to broaden the tax base. (The Guardian)
Inheritance Tax (IHT) ReformsProposals include removing the residence nil-rate band, narrowing exemptions, and taxing agricultural estates more heavily. (The Guardian)
Cash ISA Allowance ReducedReeves could cut the tax-free cash ISA limit from £20,000 to £10,000 or restructure cushions to funnel savings into investments. (MoneyWeek)
Council Tax Surcharges & Higher BandsIntroducing surcharges on high-value properties or adding new bands (G
