On Wednesday, Rachel Reeves will deliver the 2024 autumn Budget - Labour's first in almost 15 years.
She has warned it will involve "difficult financial decisions" and Keir Starmer has warned it will be "painful".
Britain's first female chancellor will need to find £40bn, through a mixture of savings and tax rises.
We've already heard that winter fuel payments will cease for all but the poorest pensioners and the bus fare cap in England will rise from £2 to £3 at the end of this year.
So, what else should we expect?
Income Tax and National Insurance
We have already been told that workers' income tax and national insurance won't change, but rumours have been rife that employers will have to pay higher National Insurance contributions.
Universal Credit
Labour has been considering lowering the cap on deductions that can be taken from benefit payments by up to £420 a year. If it goes ahead it could benefit 1.2 million households around the country, including 700,000 families with children. The new Fair Repayment Rate, proposed Work and Pensions Secretary Liz Kendall, could come into force in April 2025 and cap deductions at 15 per cent rather than the current 25 per cent.
National Minimum Wage
The National Minimum Wage is expected to go up by up to six per cent next year, according to reports. Younger workers could receive an even bigger increase in a bid to see 18-20 year olds paid the same as those over 21, making the same for all adults, regardless of age.
Carers' Allowance
Martin Lewis has tweeted that the Carers Allowance earnings threshold will be increased from £151 to £183.04, so carers can earn more and still receive the allowance.
Child Benefit and Free Childcare Hours
Parents, particularly those on lower incomes, have felt the pinch of the cost of living crisis over the past few years, and many will be hoping to see changes to Child Benefit and Free Childcare Hours, moving to a household income for both, rather than being based on the threshold for one earner.
Capital Gains Tax
Capital Gains Tax generated £14.4bn for the country last year, and was paid by 369,000 people - a relatively small proportion of the population - although that has doubled over the past 10 years.
The levy could be brought into level with income tax (up to 45%), or they could axe the CGT exemption for spouses, as this is often used in family tax-planning arrangements. They could also reduce the £3000 annual CGT allowance, or abolish it completely.
Fuel Duty
Motorists are likely to see increased costs, as the duty on petrol and diesel is likely to go up. Fuel duty is the tax that is paid on energy sources, with petrol and diesel both at a rate of 52.9p per litre. This figure was introduced in early 2022 when the government cut 5p off the rates to compensate for high crude oil prices after the Russian invasion of Ukraine.
Now, with oil prices stabilising and drivers increasingly making the switch to electric vehicles, fuel duty income is falling.
Inheritance Tax
As the saying goes, nothing is certain but death and taxes. Currently only those with estates valued at £325,000 and over pay Inheritance Tax. If you're giving your home to your child, (including adopted, foster and/or stepchildren) or grandchildren, your threshold can increase to £500,000. These thresholds could change under new rules.
Tightening up loopholes and "non-dom" status
A non-domiciled status allows foreign nationals who live in the UK, but are officially domiciled overseas, to avoid paying UK tax to the government on their overseas income or capital gains.
Labour has previously pledged to replace the so-called "non-dom" taxpayer status. The party said during the election campaign it would abolish the "unfair" status, which allows UK residents whose permanent homes are abroad not to pay UK tax on overseas income.
Rachel Reeves has pledged to end "outdated tax perks", which could involve bringing in a shorter-term scheme for temporary residents.
Pensions
Rumours have circulated about a cut to the tax-free lump sum you can take from your pension. Under current rules, the tax-free lump sum when you turn 55 is capped at £268,275. This could be cut to £100,000. The current £268,275 figure is equivalent to 25% of the £1.073 million lifetime allowance, which was scrapped in April 2024.
There has also been a suggestion of a single rate of pension tax relief. Currently savers get pension tax relief at their Income Tax rate. This means basic rate taxpayers receive relief at 20% - so for every pension contribution of £80, they get £20 tax relief top-up from the Government. Higher rate taxpayers currently get 40% and additional rate taxpayers 45%. This could be changed to a single rate of 30%, helping lower earners but penalising the better off.
ISAs and savings
The government could cap the amount that savers and investors can put into ISAs. A cap of £500,000 was previously floated, as a way to reform the tax-free accounts.
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