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Think tank the Institute for Fiscal Studies (IFS) has urged Chancellor Rachel Reeves to use the upcoming Autumn Budget on 26 November to reform the UK tax system. In a recent report, it warned the Chancellor to avoid increasing existing taxes so that growth is not stifled.
Chancellor should use Budget to reform tax system, IFS says
Chancellor Rachel Reeves should use the Autumn Budget to reform the UK's tax system, says the Institute for Fiscal Studies (IFS).
The think tank says this would help Ms Reeves to raise more revenue while limiting the hit to the economy.
The IFS warns the Chancellor against raising the levels of existing taxes to bring in the estimated £30 billion she requires to stay on course for her targets to repair the public finances.
Changes to wealth-related taxes, including Capital Gains Tax (CGT), would be more effective than the introduction of an annual wealth tax, the think tank added.
Isaac Delestre, a Senior Research Economist at the IFS, said: 'Revenue-raising seems likely to be a major goal of the coming Budget. But if Rachel Reeves limits her ambition to collecting more revenue, she will have fallen short.
'Almost any package of tax rises is likely to weigh on growth, but by tackling some of the inefficiency and unfairness in our existing tax system, the Chancellor could limit the economic damage.
'The last thing we need in November is directionless tinkering and half-baked fixes. There is an opportunity here. The Chancellor should use this Budget to take real steps down the road towards a more rational tax system that is better geared to promoting the prosperity and well-being of taxpayers.'
IN THE NEWS
Chancellor announces 'blitz on business bureaucracy'
Chancellor Rachel Reeves recently announced a 'blitz on business bureaucracy', with cuts to red tape that the government says will save firms £6 billion.
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Employers named and shamed for minimum wage breaches
The government has named and shamed nearly 500 employers who failed to pay the National Minimum Wage (NMW).
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UK will be second-fastest growing G7 economy, IMF predicts
The UK is set to be the second-fastest-growing of the world's most advanced economies this year, according to new projections from the International Monetary Fund (IMF).
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HMRC brings in extra £4.6 billion using 'big data' system
HMRC brought in an extra £4.6 billion in tax revenue last year by using its 'big data' system.
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Study finds 'increased openness' to using external finance amongst firms
A study carried out by the British Business Bank has revealed that the use of external finance amongst small firms stabilised in 2024 as businesses increasingly welcome using finance for growth.
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ESSENTIAL TAX DATES FOR NOVEMBER
2 November
Deadline for submitting P46(Car) for employees whose car/fuel benefits changed during the quarter to 5 October 2025.
19 November
PAYE, Student loan and CIS deductions are due for the month to 5 November 2025.
QUOTE OF THE MONTH
'I am determined to ensure we support people struggling with higher bills and the cost of living challenges, deliver economic growth and build an economy that works for, and rewards, working people.'
Chancellor Rachel Reeves commenting on data from the Office for National Statistics (ONS) that showed that the UK rate of inflation remained at 3.8% in September.
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