The everything tax raid: Will the threat of higher taxes backfire?

‘If they could tax the air you breathe they’d do it.’ That age-old moan about taxes going up has sprung to mind over the past week, as rumours about pretty much any tax you can think of being hiked were spread about. So many kites were flown about potential tax rises that even taxing selling your own home and bringing back the 50p rate were floated as potential Autumn Statement ideas troubling Jeremy Hunt and Rishi Sunak’s minds. If all this came to pass it would surely become known as ‘the everything tax raid’. But will it come to pass? Probably not. You get the sense this is a massive exercise in softening up the nation, so that when some but not all taxes go up on Thursday, people breathe a sigh of relief. Yet could this bout of not-officially-encouraged-but-definitely-not-discouraged speculation do lasting harm to the economy? Simon Lambert argues that case on this week’s podcast, where he says with sentiment already heavily depressed going into a recession, striking the financial fear of God into the population might not be the best move. Simon, Georgie Frost and Tanya Jefferies discuss the tax hikes that have been rumoured and how likely they are to happen: one gets a minus two in five chance of occurring but others seem more likely. Also on this week’s podcast, will Hunt stage a raid on pension, either via tax relief or the triple lock? Plus, the story of how Tanya helped a podcast listener win back money after paying over the odds for her mother’s care home. And finally, if among all this gloom you’ve still got room to save, should you save or invest the money, or overpay your mortgage?

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