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With a new Labour government in power and the first autumn statement on the horizon, we wanted to hear your economic priorities.
When we asked what you thought should be included in the budget, responses from Independent readers varied widely.
Many of you highlighted the need for a simpler, fairer tax system, with suggestions ranging from ensuring tax equality on capital gains and inherited wealth to introducing minimum VAT rates and increasing sin taxes.
Others took a different approach, proposing that Britons contribute more directly to the services they use, such as introducing charges for GP visits or A&E attendance to alleviate pressure on the NHS.
Here’s a closer look at your suggestions:
Radical changes
A complete overhaul of NI [national insurance] and ICT [investment tax credit].
Currently, employment is taxed twice while unearned income is not.
NI and ICT need to be combined into a single tax.
Renters will pay more and workers less.
The argument against this has always been that OAPs don’t pay NI. This can simply be addressed by adjusting the effective rate of the new combined tax for over 65s.
Of course, such a change is too radical for any government and won’t be debated until the public begins to question why we pay so much more tax on earnings from work than other income.
Ian Robinson
‘Tax the most important factor’
Tax is the most important matter facing this Labour Government.
40bn is the right number to go for because this will start making a difference in defence, junior doctors’ and teachers’ salaries, potholes in roads, litter everywhere, local council funding, etc.
You have to go where the money is. The 2024 rich survey has 220,000 people in UK with assets of $30mn or more ($30 mn is today’s definition of rich. 50 years ago it was $1mn. By 2035 it will be $200mn. Consisting of inherited wealth like the Duke of Westminster, Rausings (these pay little or no UK tax), tech (Autonomy – bless Lynch) PE, a few City bankers and lawyers). That adds up to 5.5 trillion pounds. A tax of 1 per cent or 2 per cent would go a long way and would hardly be missed by these people. I think 40 bn this year and every year is doable and necessary.
gileschance
‘I want to buy British’
Ultra-low tax (green) manufacturing hubs with super low rents for them spread across the country. Almost everything I buy now mostly comes from China – there are excruciatingly few products seemingly made here. I want to buy British to keep the money in our country, but I can’t if basic essentials made in Britain are borderline extinct!
Also: inventors hubs to help British people realise their ideas for useful products.
Foxicus
‘Wealth tax’
Reeves should equalise capital gains tax and allowances with income tax for fairness with the proviso of indexation or taper relief on gains to allow for inflation. This will put those who derive income from capital gains on par with those who pay tax on employed and self-employed earnings.
Cap agricultural relief on Inheritance tax at around £3 million – this would exempt and protect small family farms but remove the exemption to the super-rich who use investment in agricultural holdings to shelter from inheritance tax.
A wealth tax on those with £10 million plus in assets combined with an exit tax on those that choose to desert the country to avoid tax.
Kernow
‘Charge to see a doctor’
Make pension relief fair by giving everyone the same tax benefits. I suggest a 20 per cent relief.
Limit the tax-free lump sum allowance to £100,000.
There are probably very few people who benefit from the higher number.
Scrap free prescriptions for anyone under pension age. If you’re really sick then it would continue as is, if recommended by a clinician.
Charge £50 for every visit to see a doctor and the same for A&E at a hospital. All of these charges should be ploughed back into the NHS and used to finance working more closely with the private health sector. Recognise that the standalone NHS is a thing of the past.
Going the other way, increase the income tax-free allowance in line with inflation.
Charge a toll to drive on motorways, as per most countries.
BlueButton
‘Go back to self-certification’
Revoke IR35 (off-payroll working rules). Causes chaos in resourcing for projects (therefore impacting productivity) and a load of red tape. Osbourne was heavily lobbied by the big consulting firms to bring in this monstrosity. Get rid of it and go back to self-certification which worked perfectly well.
JonathanR
‘More tax tiers’
Up personal allowance with more tax tiers; lower tax levels for young people and disabled; treat bonuses as income; capital gains on second plus homes; close inheritance tax loopholes for super rich Iike the Grosvenors (inherited £8 billion in trusts, paid no tax); make large tax avoidance illegal including using offshore sites; any squillionaire like owner of Pimlico Plumbing boss leaving England because of government asking for reasonable payment of tax, ban them from returning! Good riddance!
Cut financial support for royals who already have stacks of cash and land. Reduce rather than increase the tax burden on big employers. Financially support the arts. Tax breaks for longer-term investors in the UK providing training including apprenticeships and employment including for the disabled.
Benitas
‘Tax simplification’
Massive tax simplification. The current tax code is over 20,000 pages long. There is no way it is effective. It’s full of distortions and ‘nudges’, and other weirdness. Neither HMRC nor the treasury can know what’s going on. In many ways it’s more valuable to get a good accountant than invest.
Fix that mess, simplify, a lot.
9Diamonds
‘Minimum VAT’
Introduce a minimum 1 per cent VAT collection rate across everything, but raise the sole trader tax allowance.
SaintEtienne1961
‘Spread the net wide’
Spread the net wide – that way you get more feathers with less squawking.
Up the sin taxes: booze, tobacco, gambling, fuel, flights.
Up tax on dividends and capital gains.
Mileage tax on electric cars to pay for roads.
Stamp duty on investment transactions.
Revise council house bands, so council tax better reflects value.
Spend more on HMRC to reduce evasion.
Philadelphian
‘A tax on private health that goes to the NHS’
Huge companies like Amazon, Shell etc MUST pay their proper taxes.
Stop private health companies abusing the NHS: i.e a tax added that goes to the NHS.
No more money for the royals. End subsidised food and drink for MPs. Former PMs to lose perks. Tax on private jets.
flashfloyd
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