Rachel Reeves Signals Tax Decisions Will Wait for Autumn Budget Amid Inheritance Tax Talks
Chancellor Rachel Reeves has confirmed that any major decisions on taxation will be reserved for the forthcoming autumn Budget, following speculation over possible changes to inheritance tax rules.
Speaking to reporters on Thursday, Ms Reeves emphasised that her “number one priority” is economic growth. “Any decision around taxation is a … decision for the Budget, and I’ll make those announcements,” she said.
The Chancellor highlighted that the focus of the Budget will be on boosting productivity and prosperity nationwide.
“We haven’t even set the date yet for the Budget, but the key focus of the Budget is going to be to build on numbers that we’ve seen today to boost productivity and growth and prosperity all across the country.
That is my number one priority as Chancellor, to get our economy firing off all cylinders so that working people in all parts of the country will feel the benefits of that economic growth.”
Ms Reeves added that further decisions would be guided by the Office for Budget Responsibility’s official forecast. “We’ll wait for the official forecast from the Office of Budget Responsibility, and we’ll make those decisions in the round,” she stated.
Reports earlier this week suggested that the Treasury is exploring measures to tighten rules on gifting assets and money as a potential means of addressing the UK’s multi-billion-pound fiscal gap, with an inheritance tax overhaul under consideration to cap lifetime gifts and limit how assets can be transferred before death.
Under current rules, gifts made more than seven years before death are exempt, while those made between three and seven years are taxed on a sliding scale.
The comments come as official data reveals a slowdown in the UK economy in the second quarter of the year. The Office for National Statistics (ONS) reported GDP growth of 0.3% for April to June, down from 0.7% in the first quarter.
Despite this slowdown, the figure exceeded the 0.1% predicted by economists, thanks to a late surge in activity during June and revised data for earlier months.
Government reversals on winter fuel payments and welfare reform have contributed to a multibillion-pound spending gap, adding further pressure on Ms Reeves as she prepares to outline the Budget later this year.
