Potential tax rises, safety standards for online purchases, and the revival of the Pensions Commission
Today’s blog post investigates the possibility of tax rises which may need to be introduced in the autumn, reassurance for businesses who purchase from online retailers as regulations are introduced, and plans to protect the pensioners of the future.
Government Borrowing Jumps – Are Tax Rises on the Way This Autumn?
UK government borrowing was £20.7 billion for June, according to new figures from the Office for National Statistics (ONS) – an increase of £6.6 billion compared to the same month last year.
While the overall figure is broadly in line with forecasts for the year so far, the rise has added pressure on Chancellor Rachel Reeves ahead of the Autumn Budget. Higher spending on public services, rising interest payments on debt, and weaker-than-expected tax receipts have contributed to the increase.
What does this mean for taxpayers?
Economists now widely expect that the Chancellor will need to find £15–25 billion later this year to meet her fiscal rules – particularly the commitment to:
- Not borrow for day-to-day spending
- Get debt falling as a share of national income by 2029–30
This makes tax rises a real possibility in the upcoming Budget.
What kind of tax changes could we see?
Obviously, nothing has been confirmed yet, but there is speculation about extending the freeze on income tax thresholds beyond 2028, which brings more people into higher tax bands over time
Other possibilities might include targeted tax increases on capital gains, dividends, pensions, or business reliefs, or maybe reforms to tax breaks – particularly those perceived as benefiting higher earners or larger businesses.
At this stage it’s difficult to predict what could change, however we’ll continue monitoring developments as the Budget approaches. If you’d like to talk through your tax planning or discuss what changes could mean for you, please get in touch.
See: https://www.bbc.co.uk/news/articles/cwygq5plz04o
New Law Aims to Make Online Marketplaces Safer for Business Buyers
If your business sources products from online marketplaces – whether for resale, internal use or part of a service – you may soon benefit from tighter product safety rules.
The newly passed Product Regulation and Metrology Act gives regulators more power to crack down on unsafe goods sold online. It’s part of the Government’s Plan for Change and aims to hold online platforms like Amazon, eBay and others to the same safety standards as high street retailers.
The move follows rising concerns over dangerous products. As an example, there’s been an increase in safety incidents involving e-bikes and e-scooters, many of which involve unsafe lithium-ion batteries.
Online marketplaces will soon be expected to:
- Prevent unsafe products from being listed
- Ensure sellers meet product safety obligations
- Provide clearer information to buyers
- Cooperate with regulators
If you’re buying for your business, this should mean that you can be more confident about the safety of items you buy online. It may be worth making sure that any online marketplaces or suppliers you use are complying with the new rules as they come into effect.
See: https://www.gov.uk/government/news/tough-new-laws-to-make-online-marketplaces-safer
Revived Pensions Commission Aims to Secure Better Retirements
The government has announced the revival of the Pensions Commission, twenty years after it helped bring in automatic enrolment. Its goal is to stop future pensioners from being worse off than those retiring today.
New government analysis suggests some worrying trends:
- 45% of working-age adults are saving nothing into a pension
- 4 in 10 people are undersaving for retirement
- Self-employed workers, low earners and some ethnic minorities are most at risk of falling behind
- There’s a 48% gap in private pension wealth between men and women
It’s estimated that people retiring in 2050 could see 8% less private pension income than today’s pensioners.
What’s the Commission going to do?
The newly revived Commission will look at what may be stopping people from saving enough and will issue its final report in 2027.
What does this mean if you’re a business owner or self-employed?
If you’re self-employed or run a small business, this news is a reminder to check in on your own retirement planning. The figures suggest that 3 million self-employed people aren’t saving into a pension.
However, these figures don’t factor in that many business owners look to use their business as their pension. For instance, you may be planning to sell the business or property within it to fund retirement.
Whatever the case, it’s practical to regularly review your planning to check that you will have enough to retire on. Contributing to pensions also carry some tax advantages which can be worth factoring in.
Possible effects on employers could include auto-enrolment being expanded with increased costs or administration work. It’s too early to know what the Pension Commission will recommend, but it could pay to watch developments so that you can be prepared.