“Tax giveaways today become £7bn rise tomorrow” Deloitte head of tax and trade policy comments on Budget

Commenting on today’s Budget, Amanda Tickel, head of tax and trade policy at Deloitte, said:

“This Budget focuses on helping smaller business and investors, while larger businesses like banks, online marketplaces and gambling, and asset rich businesses will bear more of the burden. 

“The total of the tax measures announced are a net giveaway of £1.6 billion in 2026-27 but become a net tax increase of £7.0 billion in 2031-32, adding another layer of deferred tax rises. Alongside that comes considerably more complexity. Over 50 tax measures were announced today - these come on top of 100 measures taking effect in this parliament, with three quarters of these yet to come into force. The challenge will be whether businesses can see a sufficiently clear direction of travel through the growing complexity, and the newly announced paper on corporate tax simplification will be key. 

“Whilst BADR - Business Asset Disposal Relief - has been halved, given concerns capital gains taxes would rise, it was encouraging to hear about the Founders Relief of 10% on lifetime gains which should help with future investment.

“In a surprise move, the Chancellor has gone further than his predecessor in doubling the additional income tax on interest and rental income to 4% before the first rise even came into force. HMRC also continues its mission to close the tax gap, with its announcement on timely payments, making it the measure with the widest impact. 

“While the tax system can raise revenue, provide relief and encourage investment, balancing all three objectives alongside an ever-expanding set of measures could be tricky. Government will need to consider whether businesses can plan for the future and invest with confidence.”

ENDS
 

Note to editors

Deloitte spokespeople

Deloitte has a range of spokespeople available to comment on today’s Budget. They can be reached on 02920 927541 or one of the following numbers: 

• Amanda Tickel – head of tax and trade policy (+44 7920 270964)
• Debo De – chief economist (+44 7887 629107)
• Rachel McEleney – personal tax (+44 7774 337581)
• Alison Lobb – corporate tax (+44 7774 337581)
• Michael Nicolaides – employment tax (+44 7586 511104)
• Toby Price – stamp duty (+44 7824 895798)
• Andrew Clarke – VAT (+44 7887 629107)
• Chris Baldwin – business rates (+44 7785 682226)
• Ed Roddis – public sector (+44 7785 682226)
• Peter Johnson – FS/bank tax (+44 7586 511104)
• Annis Lampard – private tax (+44 7824 895798)
• Richard Bray – Places (+447990434703)
• Ian Goodsell – Private client (+447990434703)

About Deloitte

In this press release references to "Deloitte" are references to Deloitte in the United Kingdom. The information contained in this press release is correct at the time of going to press. 

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