Nothing to Learn Today from Chancellor Reeves and Pre Budget Speech

We all know there is an Autumn Budget on 26^th November 2025.

• We all know tax rises are coming given increased government spending, increased government borrowing costs and yet another 'blackhole’ in public finances.

Chancellor Reeves pre-budget speech today was of little value and in a way, was simply laying the ground for what we already know i.e., higher taxes.

Mrs Reeves said she the “World has thrown more challenges our way” and she will make the “necessary choices” in the Budget to deal with the challenges.

Mrs Reeves continues to blame the former Conservative government for the need for yet another ‘’taxing’ budget due to years of public services neglect, austerity and low production.  Labour also continues to blame the Conservatives for immigration problems that we now continue to face daily.

• There is never any mention, that we had covid-19 lockdown where millions of people were ‘kept afloat’ with the government borrowing some £600bn for NHS, vaccines, grants and bailouts, costing the government (us). No wonder there were subsequent cutbacks.
• There is never any mention of Russia/Ukraine and reliance on Russian gas/oil, that caused price rises that have ‘fuelled’ inflation globally instead of our boilers.
• There was little mention of Trump tariffs creating stubborn inflation and global uncertainty.
• There is never a mention that it was in fact Keir Starmer that won legal action against the government in a test case for immigrants to be entitled to benefits.
• There is never a mention that it was Labour that voted against immigrants being deported to Rwandan hotels.
• There is never any mention that it was only Margaret Thatcher that had UK military spending to defend ourselves at/over 5% of GDP, double what we do now.

We are not saying Labour are right or the Conservatives were right.  Our politics, as yours, are private matters.  All governments have and will make mistakes but stop the blame game.  It is somewhat tiresome, and it is time to do the job you are elected to do i.e., act in the best interests of the UK public and not do the job so that you can be re-elected.

Comment

We all know we must pay more taxes but to keep saddling employers, landlords and the wealthy will simply drive more out of business or more wealth to leave the country.

Paying more to protect us all should be a shared responsibility.  It is time to be honest with the public in that if we want an NHS to be proud of, more police on the ground, better schools, better transport and a well funded armed forces then we should all pay.

It was only in the 1970s that:

• 1970s: 1976/77 standard rate of tax was 35% (top end was 98% supertax on unearned income) and in 1979, basic rate was reduced 33%.
• 1980s: 1979, basic rate tax was cut to 30%, then 1986 – 29%, 1987 – 27% and 1988 – 25%.
• 1990s and 2000s: Gradually reduced to 23% by 1997 and  20% by 2007 where it has remained.

We have all become accustomed to very low rates of income tax which cannot possibly properly fund public services in the way we want.

• We are simply not paying enough taxes and have got used to a ridiculously low rate of taxation.
• It is time for Mrs Reeves make those “necessary choices” but be fair to all.

What we think is fair ...

• Increase income taxes for all by 2%.
• Reduce all benefits by 2% including state pensions (except disability benefits).
• This means we all contribute to a UK turnaround, less public sector borrowing and better funded and functioning public services.

or Adopt Scottish Income Taxes System for All UK

• Starter Rate: 19.00% payable on taxable income between £0 and £2,827.
• Basic Rate: 20.00% payable on taxable income between £2,827 and £13,991.
• Intermediate Rate: 21.00% payable on taxable income between £13,991 and £31,092.
• Higher Rate: 42.00% payable on taxable income between £31,092 and £62,430.
• Advanced Rate: 45.00% payable on taxable income between £62,430 and £125,140.
• Top Rate: 48.00% payable on taxable income in excess of £125,140 i.e.  £125,141 and upwards.

Adopting the Scottish system would mean lower taxes for those with low incomes, anyone with reasonable income of £26,560 or more would pay slightly higher rates at 21% (rather than 20%) and all the way up the line, would pay more.  This spreads the cost more fairly, with the poor paying less and steadily more as you earn more, thereby sharing the burden, with little real damage done for those with income below £62,430.

Does Mrs Reeves have ‘the guts’ to make the real ‘necessary choice’?

We suggest the Scottish System would be the easiest to implement, given all you need is a letter S at the end of a national insurance number for employees across the UK to pay taxes at Scottish rates as payroll software already has this built in.