Autumn budget update 2024: PM Keir Starmer warns it could be 'painful'

Prime Minister Keir Starmer has warned that the upcoming Autumn Budget 2024, set for October 30th, will be "painful," particularly for contractors and high earners.

Speaking outside Number 10, Starmer emphasised that those with the "broadest shoulders" would bear the heavier tax burden, indicating a focus on taxing wealthier individuals.

Starmer confirmed that Labour will not increase income tax, VAT, or National Insurance, leaving experts to speculate that capital gains tax (CGT), corporation tax, and pensions tax relief could be targeted instead. The potential changes are causing concern among contractor advisers, who fear that reforms could include increases in CGT, reductions in Business Asset Disposal Relief (BADR), and possible hikes in corporation tax. However the Prime Minister has not yet confirmed nor denied this fear.

Chris Bryce of the Freelancer & Contractor Services Association (FCSA) and Andy Chamberlain of the Association of Independent Professionals and the Self-Employed (IPSE) both expressed concerns that these tax hikes could significantly impact contractors. They warn that the budget could bring adverse changes that may complicate financial planning and increase the tax burden on small businesses and contractors. As the budget announcement nears, contractors have been warned to face a potentially challenging fiscal environment.

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