Key facts
- UK Chancellor John Healey is preparing for a Budget where revenue generation is a key focus.
- Labour is constrained by a manifesto pledge not to increase income tax, VAT, or National Insurance.
- Potential revenue streams include higher taxes on banks and gambling machines, and VAT collection by online marketplaces.
- A tax on electronic gaming machines could raise up to £460 million annually.
- Online marketplaces may be made responsible for collecting VAT, potentially raising £1 billion per year.
- Welfare spending cuts are also being considered, with potential savings of £50 billion annually proposed by Reform.
UK Chancellor John Healey is reportedly exploring several avenues to raise funds for the upcoming Budget without increasing income tax, VAT, or National Insurance. The government's financial 'headroom' is estimated to have fallen to as low as £11 billion, necessitating measures to meet fiscal rules and fund spending priorities. Options under consideration include a potential tax increase on banks, a hike in taxes on electronic gaming machines, and making large online marketplaces responsible for collecting VAT on sales made through their platforms. Additionally, the government is looking at welfare spending cuts, with one group suggesting potential savings of £50 billion annually.