A recent Rathbones survey of over 3,000 UK adults found that an income tax hike was a top concern ahead of the Budget, cited by 40% of respondents – second only to pensions (44%).
Commenting, Charlotte Kennedy, Chartered Financial Planner at Rathbones, says: “Reports that the Chancellor is set to abandon plans to raise income tax are jarring, especially after her recent pre-Budget speech seemed to signal an increase.
“The government still has a multi-billion-pound fiscal black hole to plug, and the reported move could put other unsavoury tax changes back on the table. The harsh reality is that taxpayers’ income tax burden is already increasing because of the deep freeze in thresholds, which pushes people into higher tax brackets as their earnings rise.
“With less than two weeks to go until Budget Day, a smorgasbord of ideas is being tested on the public ahead of the fiscal event.
“A recent Rathbones survey of more than 3,000 UK adults revealed that potential changes to pensions, income tax and inheritance tax regimes are the leading concerns ahead of the Budget. Amid the uncertainty, it remains sensible to avoid knee-jerk reactions and irreversible decisions that could undermine your financial resilience.”
