Key facts
- UK finance minister John Healey is expected to consider tax increases in his October 28 budget.
- Healey may extend the mansion tax to properties valued over £1.5 million, potentially doubling the number of affected homes.
- An energy subsidy of over £1 billion for lower-income households is being considered.
- Mayors could be given a 20% share in revenue growth from local business taxes.
British finance minister John Healey is expected to consider tax increases in his upcoming October 28 budget, aiming to bolster fiscal room for maneuver which has been strained by rising global borrowing costs. Healey and Prime Minister Andy Burnham have also pledged to ease the cost of living for voters, though the scope of the budget may be limited by public finance pressures and prior tax hikes.
According to The Times, Healey is contemplating extending the mansion tax to properties valued above £1.5 million, a change that could more than double the number of homes subject to the levy to approximately 271,000 based on current values. This is a reduction from the current threshold of £2 million.
Senior executives from major British banks met with Healey, with reports suggesting uncertainty about whether he plans to increase the windfall tax on the sector. Meanwhile, The Guardian reported that Healey is considering an energy subsidy exceeding £1 billion, primarily aimed at lower-income households, which would be smaller than previous government support programs.
The emergency fuel duty cut, implemented after Russia's invasion of Ukraine, is scheduled to expire in January. Healey has indicated awareness of the potential pressure on individuals if fuel duty is raised, noting that no government has increased it since 2011.
Prime Minister Burnham has committed to granting more powers to local authorities to stimulate economic growth in underperforming regions. One proposal reported by Bloomberg suggests mayors could receive a 20% share of revenue growth from local business taxes.