Here’s where I fear Labour could strike in the Budget: JEFF PRESTRIDGE on how to protect your savings, pensions and wealth
Ahead of the Budget, the article considers possible changes that could affect household savings, pensions and wealth. It argues that further tax rises would put pressure on families and businesses, while noting that early signals from Chancellor John Healey suggest a gentler approach than the previous Budgets.
The article says Labour has ruled out another rise in capital gains tax, which is currently 18 per cent for basic-rate taxpayers and 24 per cent for higher and additional-rate taxpayers. Possible measures include more help with energy bills, a personal allowance top-up for around one million low-income pensioners, and scrapping planned fuel duty increases from 52.95p to 55.95p a litre. It also recalls that tax changes announced in the 2024 and 2025 Budgets raised £75 billion combined, and that past speculation led some people to withdraw pension cash unnecessarily.
In short
- The Budget may bring targeted help for households.
- Capital gains tax rises have been ruled out.
- Past tax speculation prompted unnecessary pension withdrawals.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters of further tax rises could argue that they help fund public services and targeted support, including energy-bill relief and a pension allowance top-up, while asking those with greater means to contribute more. Given the reported £75 billion raised in earlier Budgets, they may see fiscal changes as a way to meet public needs while still ruling out another capital gains tax rise and avoiding unnecessary disruption to pension savers.
The case against
Opponents could argue that further tax rises would squeeze household finances and make it harder for businesses to invest, especially after the substantial increases already raised in the 2024 and 2025 Budgets. They may favour targeted relief, such as freezing planned fuel-duty increases, and stress that speculation about pension tax changes can prompt savers to make costly decisions before any policy is confirmed.
Explained simply
The Budget is the government’s plan for taxes and public spending, presented by the Chancellor of the Exchequer. Changes to tax rules can affect how much people keep from savings, pensions and investments, as well as the cost of household bills and fuel.
Labour is the governing party, and John Healey is named in the report as Chancellor. Capital gains tax is charged on profit made when certain assets, such as shares or property, are sold; pension rules and personal allowances also shape people’s income in retirement. These decisions matter to households and businesses because they can affect both their finances and the money available for public services.