Targeting Banks and Gambling Machines
BBC Verify reports that bank bosses widely believe the Chancellor is preparing to raise taxes on banks in the Budget. Tax Policy Associates estimates that increasing the bank corporation tax surcharge from 3% to 5.5% could raise between £1bn and £2bn annually. Banks have warned that higher levies could deter wealthy investors and impact pension funds or customer rates. Additionally, former Prime Minister Gordon Brown has urged a hike on electronic gaming machines. The Social Market Foundation estimates that doubling machine taxes from 20% to 40% could generate £275m to £460m, though the gambling industry cautions this could prompt betting shop closures and threaten horse racing funding.
Online Marketplaces and Welfare Spending
Reports indicate the Chancellor may make major online platforms like Amazon, eBay and Temu responsible for collecting VAT owed by third-party retailers, potentially closing a gap where some overseas or non-compliant firms evade liabilities. This measure could raise up to £1bn a year, with Amazon estimating £700m. Meanwhile, the Treasury faces demands to curb public spending. Office for Budget Responsibility projections show working health and sickness benefits rising from £68bn this year to £81bn in 2031. While opposition parties claim massive savings are possible through restricted access, independent experts note that achieving welfare reductions would likely require upfront employment support spending.