Chancellor Rachel Reeves and the Tax Blues
Breaking news from HMRC: the numbers this month are a real downer. Leading audit and advisory firm Blick Rothenberg has rolled up its sleeves to explain why the tax and borrowing headlines look like they’ve been hit by a pothole.
What’s Happening in the Stats?
- HMRC pulled in £28 bn more last year, a 3.39% rise from the 2023/24 tax period.
- Employee National Insurance Contributions (NICs) dropped to 8% in April 2024, knocking £6 bn off the overall haul.
- Income tax went up over 9%, but Self‑Assessment Income Tax dipped a smidge from March 2024.
- When you combine Self‑Assessment payments with PAYE receipts, the year‑on‑year jump is still impressive.
The Big Numbers: 2024/25 vs 2025/26
Tax receipts are up about 3.39%, totalling £857 bn. But don’t let that calm you – the government’s borrowing spree has crept to almost £152 bn, exceeding the Office of Budget Responsibility’s expectations by more than £14 bn.
Why This Matters to You
They say the biggest dose of shock isn’t from global politics but from the new NIC hike for employers set to kick in April 2025. Take this as the government’s effort to push the economy, and they’re also pulling the brakes.
What does that mean? Many business leaders will put growth plans on hold, cut staff, and overall the economy will feel the tickle of a slow‑poke punch.
Takeaway
So, if you’re sitting on a sum in your Self‑Assessment box, or if your company is feeling the pinch of rising NICs, just know Britain’s fiscal playground is full of twists and turns. Stay marked for changes – and keep that humour handy; it’s the best tool for weathering these tax storms.
