12/10/2026
Media Tax Highlights -
-Saturday 10 to
Monday 12 October 2026
Budget
Healey faces £35bn dilemma over spending and tax
The Institute for Fiscal Studies says higher inflation could require the Chancellor to add as much as £35 billion to departmental budgets by the end of the decade to prevent real-terms reductions. The think tank estimates that higher debt-interest costs would increase borrowing by around £10 billion in 2029/30, partly offset by stronger nominal tax receipts. It argues that the Budget must transparently set out whether ministers will accept tighter public-service settlements or raise additional revenue. Helen Miller of the IFS said spending plans that ministers do not intend to follow would undermine fiscal credibility.
City AM (Felix Armstrong)
IFS: budget will be ‘work of fiction’ without clear plan to cover UK’s £35bn spending pressures (The Guardian – Richard Partington)
Tax evasion
Documents falsified to evade tax on Abramovich's wealth, BBC finds
The BBC’s Panorama programme claims that Deloitte in Cyprus helped Roman Abramovich to hide wealth and evade tax. The BBC’s investigation states that accounts signed off by Deloitte in Cyprus meant assets such as superyachts, mansions and private jets worth $672m (£508m) did not appear in Abramovich's company accounts. Barrister Andrew Mitchell KC, an expert in financial services law, said Panorama's evidence showed the scheme was "straightforward" tax evasion and "it couldn't be more blatant". Deloitte Cyprus said it could not comment on the specific allegations because the documents were more than 20 years old and no longer accessible.
BBC News (James Oliver, Rory Tinman and Simon Lock)
Income tax
Raise income tax on over-40s to fund social care, Burnham urged [PAYWALL]
Former pensions minister Sir Steve Webb has proposed automatically enrolling people aged 40 and over into a voluntary social-care funding scheme. Under plans drawn up by the consultants LCP, for whom Webb works, participants would pay the equivalent of an 1p of income tax on basic-rate earnings in return for discounts on future care costs, with an opt-out available. LCP modelling says the proposal could cover 23 million taxpayers, including 8.6 million pensioners, and raise around £3.5 billion a year. The proposal is not a government announcement. The Telegraph reports that officials are examining it, while The Times says that the plans have also “attracted interest” from the Casey Commission, which the government set up to examine reform of the social care sector.
Daily Telegraph (Szu Ping Chan)
Over-forties could face paying £30 monthly fee to fund social care [PAYWALL] (The Times – Geraldine Scott and Eleanor Hayward)
National insurance
Business group calls for reversal of employer National Insurance increase
The London Chamber of Commerce has urged the Government to reverse the employer National Insurance increase, arguing that it raised hiring costs and contributed to weaker employment. Its Budget submission described the measure as a “direct tax on employment” and proposed an exemption when employers recruit under-25s who have been outside education, employment or training for at least a year. The Chamber’s claim about the measure’s employment effect is its assessment rather than an official estimate.
Daily Express (Alex Evans)
Business rates
One pub closes each day as industry seeks further tax changes
The British B**r and Pub Association expects around 360 pubs to close during 2026, after 295 closures so far this year. It estimates that the closures will cost about 5,000 jobs and reduce tax receipts by nearly £72 million. The association welcomed the announced 20% business-rates reduction for pubs, clubs and live-music venues, but called for a longer-term rates settlement, a beer-duty freeze, greater draught relief and a review of employment costs for younger workers.
City A.M. (Felix Armstrong)
A pub shuts its doors for good every day in 2026, figures show (Yorkshire Post – Ralph Blackburn)
Chancellor reportedly rules out warehouse tax
The Chancellor has reportedly ruled out a new “warehouse tax” in the forthcoming Budget following concerns from major retailers that a higher multiplier could affect large stores as well as distribution centres. John Lewis chair Jason Tarry had said more than 200 of the partnership’s properties could be affected, while Marks & Spencer chief executive Stuart Machin called for a reduction in the wider tax burden on retailers.
Sunday Telegraph (Camilla Turner)
Making Tax Digital
Third of HMRC-approved Making Tax Digital software not ready for the job
More than a third of HMRC-approved software for Making Tax Digital (MTD) is not capable of handling end-of-year tax returns, reports the Telegraph, despite an upcoming deadline for landlords and sole traders. The Government lists compatible software that landlords and the self-employed earning (sic. It’s turnover] more than £50,000 must choose from to report quarterly updates and an end-of-year tax return as part of rules introduced in April. However, out of 138 software products available to self-employed workers, 51 lacked the ability to do both. Emma Rawson, at the Association of Taxation Technicians, warned it was a “real area of concern” for those being caught by new MTD rules. She said: “If taxpayers inadvertently pick the wrong software for them, they could be in for a surprise when they try to file their tax return and find it cannot do it.”
Daily Telegraph (Benedict Smith)
HMRC Making Tax Digital software warning for people earning (sic. It’s. TURNOVER) over £30,000 (Birmingham Mail – James Rodger)
Property taxes
Mansion tax won’t extend to £1.5m homes
Reports say the Government will retain the £2 million threshold for its planned high-value property surcharge rather than reduce it to £1.5 million. The Sunday Times reported that lowering the threshold would have brought an additional 137,000 properties into scope. Telegraph coverage says the Valuation Office Agency would use property characteristics, including architectural features, as part of its valuation process.
Sunday Times (Ben Riley-Smith)
Mock Tudor homes targeted by Healey’s mansion tax police (Sunday Telegraph – Camilla Turner) [PAYWALL]
Holiday-let owners face higher council tax under proposed treatment
Telegraph analysis says treating holiday lets as second homes for council-tax purposes could increase annual liabilities by more than £4,750 for some owners. The paper estimated that average annual profits could fall from nearly £5,000 to below £200 in the example it examined. The figures are based on the newspaper’s analysis and should not be read as a universal outcome for all properties.
Daily Telegraph (Robert White)
Tax on banks
Budget bank-tax debate raises concerns about uneven treatment of lenders
The Telegraph reports concern in the City that any Budget increase in bank taxes could fall more heavily on UK high-street lenders than on overseas banks or non-bank credit funds. Banks have argued that increases to the levy or corporation-tax surcharge could constrain lending and investment. The article says domestic bank shares have fallen during the past month amid tax uncertainty, while noting concern that activity could shift towards less regulated private-credit markets.
Daily Telegraph (Tom Saunders)
Wealth tax
More than 60% of voters back wealth tax for mega-rich
Around 6 in 10 voters support increased taxes on individuals worth over £10 million, according to a Survation poll for Tax Justice UK. The survey indicates that 63% back these tax hikes, while 61% favour windfall taxes on bank profits, and 62% support similar measures for energy firms. Campaigners estimate these changes could generate £36bn annually.
Daily Mirror (Dave Burke)
