The Liberal Party notes the confirmation by the Chancellor that the 2026 Autumn budget will be published on the 28th October.
The government’s pre-election pledges to adhere to stringent fiscal rules and its own compulsion to tax and spend has left its chancellor with limited room to fund government spending commitments proposed by the new PM.
The Liberal Party has long argued that the government should prioritise making work pay, commit to increasing the personal tax threshold in the long term to 20K (15K in the short to medium term) potentially taking five million out of the income tax, and lastly, simplifying the tax system as well proportionally increasing taxes on wealth by equalising Capital Gains Tax/Dividends Tax with Income Tax.
We also believe the government should aim to run a surplus before interest payments of 2.5% GDP and look to invest £2.5% GDP in infrastructure to support economic growth and to work towards controlling public debt now hovering just below £3 trillion pounds.