Budget 2024 predictions from vape tax to fuel duty hike

Chancellor of the Exchequer Rachel Reeves
-Credit: (Image: Stefan Rousseau/PA Wire)


A series of tax increases are being considered for the new Labour Government's first Budget, reports suggest. Changes to inheritance tax, fuel duty, stamp duty, and a levy on e-cigarettes are among the measures said to be up for consideration by Rachel Reeves in her October 30 fiscal announcement, according to reports across the media on Friday morning.

The Chancellor is also expected to honour the previous Tory government’s plans to make around £3 billion of cuts to welfare by reforming work capability rules. Work and Pensions Minister Alison McGovern did not steer away from the reports when asked about them by broadcasters but said Labour was making its “own reforms” to the benefit system.

Multiple changes to inheritance tax are being considered by ministers, according to reports by the BBC, though it is not certain how many people will end up paying more money, nor how much more they might pay.

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The levy does not affect the vast majority of the public at the moment, with only 4% of deaths resulting in an inheritance tax charge as the threshold for the 40% charge is an estate above £325,000.

Ms Reeves is also said to be considering bringing a stamp duty discount introduced by the Tories to an end, the Times newspaper reports, which is expected to raise £1.8 billion a year by 2029.

Other reports suggest a tax on vapes could be raised, and that fuel duty could be hiked for the first time in 14 years. Ms Reeves is looking to raise up to £40 billion from tax hikes and spending cuts in the Budget as the Government seeks to avoid a return to austerity.