Ms Reeves is widely believed to be against extending it, which would hit most homebuyers with an extra £2,500 to pay and cause “chaos” in the property market. Nine in 10 houses would fall into the tax trap, up from the current six in ten.
Increase bus fare cap
Money raised: £300m
Cost to you: up to £1 per journey
Passengers currently enjoy a £2 cap on bus fares, which the Conservatives implemented until the end of 2024.
However, Sir Keir Starmer announced on Monday that this will increase to £3 in the Budget until the end of 2025. It will lead to higher fares, but could also cost the taxpayer around £300 million next year.
Increase fuel duty
Money raised: £4.2bn
Cost to you: £175
Duty is applied to fuel in vehicles and heating your home. It’s already included in the price and is charged in addition to VAT.
A temporary cut announced by then-prime minister Rishi Sunak in 2022 has seen prices fall at the petrol pump, but Ms Reeves is reportedly considering a rate hike.
This could be up 7p if, as expected, the cut is reversed and inflationary rises are reinstated for the first time since 2011.
According to the Campaign for Better Transport, this would generate an extra £4.2bn in duty.
Increase ‘sin taxes’
Money raised: up to £3.7bn
Cost to you: up to 5p a pint
The Chancellor is reportedly considering a £2.9bn raid on the gambling industry, with suggestions from the Institute for Public Policy Research being seriously considered behind the scenes.
Among its recommendations is doubling machine games duty, which experts say could “destroy the British seaside”. Casinos, bookmakers and remote gaming websites could also be hit by the increase.
Alcohol duty could also be targeted for an increase. It already rises with the Retail Price Index (RPI) unless the Chancellor freezes it, which did happen from 2020-2023.
The Chancellor has already been presented with an OBR forecast that shows a raise would generate an extra £800m, but industry experts say it would turn away customers and hurt both pubs and jobs. Tobacco duty is also thought to be under consideration as part of a collective “sin tax”.
