Chancellor's Budget approach causing 'economic distortion', say Scottish experts

Contributing sentiments towards policy:

57% : It was widely speculated Labour would break its manifesto commitment not to raise income tax in its upcoming budget after Ms Reeves made an unprecedented pre-Budget statement last week.
55% : It is understood the Treasury is also considering a new tax on electric vehicles and higher taxes on gambling companies, amongst other measures.
54% : " Ms Reeves had planned to increase income tax rates by 2p, but compensate workers with a 2p National Insurance cut.
52% : At the end of last week Chancellor Rachel Reeves ruled out increasing income tax in her 2026/27 budget, which will be published on November 26.
51% : " Ms Spowage said what has played out in the media suggests the Chancellor wanted to "pitch the idea of breaking her manifesto commitment" on income tax before making a final decision on what will happen in the Budget.
51% : This would not break the party's manifesto commitment but could see income tax go up for some as increased salaries could pull them into new tax brackets.
50% : The Chancellor initially thought she was dealing with a £30bn black hole in public finances, however new assessments from the Office for Budget Responsibility have increased the projected strength of wages and tax receipts, taking the gap closer to £20bn.
50% : This could include extending the freeze on income tax and National Insurance thresholds, which is due to expire in 2028.
49% : Other options include lowering the income tax thresholds.
47% : "One reason they pulled back from income tax increases is because of the views of their backbenchers.
46% : If Ms Reeves does not increase income tax rates in her Budget, she will need to think of other ways to raise money while still sticking to her self-imposed fiscal rules on debt and borrowing.
44% : Speaking after the government's U-turn on income tax, UK Conservative leader Kemi Badenoch said: "It's good if they aren't going to increase income taxes, but the truth is they shouldn't be increasing any taxes at all.
42% : "Reeves must guarantee no new taxes on work, businesses, homes or pensions - and she should go further by abolishing stamp duty."
35% : "The markets haven't responded particularly well to the idea that instead of a broad-based income tax rise in order to fill the hole the Chancellor is dealing with, she is more likely to take a smorgasbord approach of lots of little taxes, which might be easier politically as that doesn't break a manifesto commitment, but could cause economic distortion, particularly if it suppresses investment.
35% : She added: "They cannot push through the welfare reforms they want because their backbenchers won't support it, they cannot borrow more money because the markets won't wear it, so they need to think about increasing tax.

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