UK Chancellor of the Exchequer Rachel Reeves is considering a series of tax measures aimed at addressing a fiscal shortfall estimated between £20 billion and £40 billion. One proposal under review includes levying National Insurance contributions on rental income, potentially increasing taxes on landlords by £2 billion. Additionally, Reeves is exploring a windfall tax on commercial banks to recover profits made from taxpayer-backed deposits at the Bank of England, which could generate billions in revenue. These measures have raised concerns within the financial sector and among business leaders. The head of supermarket chain Asda has publicly criticized the proposed tax increases, warning that they could hinder business investment and impact customers at the point of sale. The tax plans also include a £1.7 billion levy expected to affect food businesses. Meanwhile, Aldi has announced plans to raise staff wages for the second time in two months amid these economic pressures.
🇬🇧 Reeves’s £1.7bn tax raid ‘will hammer food businesses’ https://t.co/JVBQe0Kq4x
🇬🇧 Asda says new business taxes mean customers are ‘feeling it’ at the till https://t.co/Z0f4K3PfLR
🇬🇧 Asda boss slams tax hikes: 'Businesses have to be allowed to invest' https://t.co/1pI5uIacEI