Chancellor Rachel Reeves Tackles the £22bn “Black Hole” in Public Finances
Yesterday, the Chancellor of the Exchequer, Rachel Reeves, delivered a speech that felt less like a cosy garden party and more like a naval drill—“necessary and urgent work” must be done to plug a reported £22 bn black hole in the public finances.
HMRC Gets a Tax‑Compliance Upgrade
- HMRC will recruit a fresh wave of compliance officers—think of them as the “Tax Troopers” on a mission to catch evaders.
- New tech and funding will be poured into the tax office’s infrastructure so that data crunching happens faster than you can say “income tax.”
- Legislative changes on the horizon aim to close loopholes and raise revenue.
Cautionary Autumn Budget on the Horizon
Reeves has already set the date for her first Autumn Budget: 30 October. She warned that “difficult decisions” will be required to steady the economic ship—so don’t be surprised if the crew gets a bit gritty.
What the Self‑Employed Can Expect
While Labour has promised no hikes in income tax, national insurance or VAT before the election, the tone of the speech suggests that the budget might usher in the dreaded tax rise waveform. A tax compliance expert, speaking on behalf of self‑employed people, said:
“The final take‑away is clear: HMRC will beef up its compliance squad, invest in its tech, and push for legislative moves against tax avoidance schemes that have been frying the umbrella industry.”
However, there’s a twist—more power for HMRC could mean tighter scrutiny and, according to the expert, a potential threat to innocent freelancers and contractors who have found themselves tangled in costly investigations. “We need to enforce fairness, not turn every taxpayer into a suspect,” they added.
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