Four ways Labour could raise money in the Budget without hiking income tax
The UK government is exploring ways to raise revenue in the upcoming Budget without violating manifesto pledges to avoid income tax, VAT, or National Insurance hikes. Potential options include increasing the corporation tax surcharge on banks.
Why it matters
Fiscal policy decisions directly impact the UK economy, banking sector profitability, and public service funding.
By Ben Chu Policy and analysis correspondent Published 15 minutes ago We're likely to hear a lot about the chancellor's "headroom" in this Budget.
That is the cash buffer the government has to help meet its own fiscal rules and reduce borrowing.
Economists think the buffer might have halved in the last six months from around £24bn to as low as £11bn, in part because of rising interest rates the government has been paying to borrow money from private investors.
The Chancellor, John Healey, might need to raise money to restore it, which would show the government's plan to reduce borrowing by the end of this Parliament is still on track.
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