Tax raids loom in Rachel Reeves’ budget today

Ms Reeves is widely believed to be against extending it, which would hit most homebuyers with an extra £2,500 in fees and cause “chaos” in the property market. Nine out of 10 homes will fall into the tax trap, up from the current six in 10.

Increasing the bus fare limit

Money raised: £300 million
Cost to you: up to £1 per trip

Passengers are currently subject to a £2 bus fare cap, which the Conservatives have introduced until the end of 2024.

However, Sir Keir Starmer announced on Monday that the Budget would increase this figure to £3 by the end of 2025. This will lead to higher tariffs but could also cost taxpayers around £300 million next year.

Increase duty on fuel

Money raised: £4.2 billion.
Cost to you: £175

The duty is levied on fuel in vehicles and heating at home. It is already included in the price and is charged in addition to VAT.

Temporary cuts announced by then Prime Minister Rishi Sunak in 2022 have led to a fall in petrol station prices, but Ms Reeves is reportedly considering raising rates.

This could rise by 7p if, as expected, the cuts are reversed and inflation rises again for the first time since 2011.

This would generate £4.2 billion in additional tariffs, according to the Campaign for Better Transport.

Increase “sin taxes”

Money raised: up to £3.7 billion.
Cost to you: Up to 5p per pint

The Chancellor is reportedly considering a £2.9 billion raid on the gambling industry, with proposals from the Institute for Public Policy Research being seriously considered behind the scenes.

His recommendations include doubling the duty on slot machines, which experts say could “destroy the British coastline”. Casinos, bookmakers and remote gaming sites may also be affected by the rise.

The duty on alcohol could also be increased. It is already rising along with the Retail Price Index (RPI), unless the Chancellor freezes it, which is what happened in 2020-2023.

The Chancellor has already been presented with an OBR forecast that shows the rise would bring in an extra £800 million, but industry experts say it will drive away customers and harm both pubs and jobs. It is believed that the tobacco tariff is also being considered as part of a collective “sin tax”.