Revenue raising

Hard sells and low fruit to refill chancellor's coffers

- Heather Stewart

The chancellor is widely expected to increase taxes as she attempts to find billions of pounds to repair the public finances.

Rachel Reeves is expected to raise between £20bn and £30bn. With an income tax rise off the table, here are some of her other revenue-raising options on 26 November as she seeks to build up more headroom against the tight fiscal rules she adopted last year.

Freeze income tax thresholds for another two years, to 2030

In normal times, the thresholds at which taxpayers move into paying the higher and additional rates of income tax move up each year in line with inflation.

Rishi Sunak froze these thresholds for four years in his 2021 budget, during the pandemic. Jeremy Hunt then extended the freeze for another two years.

Reeves suggested in her budget last year that extending the freeze further would “hurt working people”. But the measure has long been seen by economists as among the likeliest options this time around.

Raises £7.5bn a year

Implement a pay-per-mile charge for electric vehicles