Labour’s Emergency U-Turn: Income Tax Rise Dropped from Budget! Black Friday Spending Could Hit £14 Billion! Viagogo Hit with Multi-Million Pound Tax Bill
- TBA
- Nov 17
- 5 min read
Rachel Reeves to abandon plans to raise income tax rates in budget
According to British media reports, UK Chancellor Rachel Reeves will abandon the original plan to raise income tax rates in the upcoming budget. The move has been described as “tearing up” a core budget measure and represents a major policy U-turn by Labour as internal unrest within the party intensifies.
The Guardian, citing sources, said Prime Minister Keir Starmer and Chancellor Reeves have jointly decided to drop their pledge in the Labour manifesto not to increase the tax burden on workers. The Financial Times first revealed that this tax reversal was submitted to the Office for Budget Responsibility (OBR) on Wednesday, 12 November. Downing Street has not denied the reports but declined to comment on the contents of the budget.
Previously, ahead of the autumn budget, Reeves held an unusual pre-budget press conference, effectively giving the public an early “warning shot” and hinting that she would break a key election-time pledge by raising income tax rates. (Related: Tax rises are inevitable! The UK Chancellor gives a rare speech before the Autumn Budget!)
Now, she and Starmer may instead rely on a series of “small-scale tax increases” to fill the multi-billion-pound fiscal gap caused by downgraded productivity forecasts and policy reversals on winter fuel payments and disability benefits. According to the Financial Times, Reeves may adjust income-tax thresholds and allowances—an approach widely regarded as a “stealth tax rise.”
Another potential option is to raise gambling duties to fund the additional costs of scrapping the “two-child benefit limit.” However, Treasury sources say the revenue from this would fall far short of covering the expense.
This shift comes after a week of intense “briefing wars” within Labour. Allies of the Prime Minister indicated that Starmer would fight to keep his position if challenged, with some even naming Health Secretary Wes Streeting as a possible contender, though he has publicly denied this.
Discontent within Labour over Starmer’s leadership has been brewing for months, and the income-tax plan became the spark that pushed tensions to breaking point. Some MPs have even discussed whether the move could mark the beginning of the end of Starmer’s premiership. Several ministers believe that this decision is tantamount to announcing the start of a “succession countdown.”
Warning as Britons prepare to spend £14 billion this Black Friday
With the arrival of the Black Friday shopping season, UK consumers are expected to spend nearly £14 billion. Research by e-commerce marketing platform Omnisend shows that consumers will spend an average of £299 during Black Friday — an increase of £83 year-on-year. Average spending on Cyber Monday and the days that follow is also expected to rise to £229, £70 higher than last year.
The most popular purchase categories include clothing and accessories (49%), tech and electronics (45%), and toys (28%). Omnisend predicts that one-third of consumers plan to spend more than last year, while only 14% expect to spend less.
Meanwhile, inflation and debt pressures are affecting how people choose to pay. The survey shows that “Buy Now, Pay Later” (BNPL) services such as Klarna and PayPal are becoming less attractive: only 17% of consumers say they will use BNPL during Black Friday, though 32% would consider using it for high-priced items.
Amazon remains the top platform of choice for Black Friday and Cyber Monday shopping (76%), but a growing number of UK consumers are also turning to Chinese e-commerce platforms such as Temu (22%), Shein (21%), and TikTok Shop (14%).
Despite Black Friday’s continued popularity amid the surging cost-of-living pressures, concerns about “fake discounts” and scams are increasing.
Analysts advise consumers to research original prices weeks before the sales begin to avoid falling for retailers that mark up prices in advance and then offer seemingly attractive discounts. Shoppers are also urged to carefully verify seller information at checkout, stay alert to suspicious websites or links, and use credit or debit cards whenever possible for added protection. If you suspect you’ve been targeted by a Black Friday scam, call the number on the back of your bank card immediately and report the incident to Action Fraud.
UK divisions of ticket resale website Viagogo hit with £15m bill over tax shortfall
Two UK subsidiaries of ticket-resale platform Viagogo have recently been hit with a tax demand of around £15 million by HM Revenue & Customs (HMRC). The company has long faced criticism over problems in the secondary ticketing market, with accusations that it enables scalpers to profit through the platform at the expense of consumers.
According to company filings, Viagogo’s two subsidiaries — VGL Services and IFOT Services — have set aside funds to cover tax adjustments, interest, and penalties arising from a “transfer pricing inquiry” for the years 2016 to 2018.
“Transfer pricing” refers to the pricing of goods or services exchanged between subsidiaries within a multinational corporate group. Tax authorities examine whether companies manipulate internal prices between high-tax and low-tax jurisdictions to shift profits and reduce their tax burden.
The £15 million provision includes interest and penalties related to late tax payments. Although the filings do not detail HMRC’s findings, there is no indication that Viagogo deliberately engaged in tax evasion or avoidance. During the period under investigation, the two UK subsidiaries did not directly sell tickets; instead, they provided technical and customer-support services to other parts of the group.
The company stated in the filings that HMRC’s decision could result in “double taxation” — where the same income is taxed in two different jurisdictions. Viagogo says it has updated its transfer-pricing policies and plans to seek relief through tax treaties between the UK and other countries, which may lead to some financial recovery in the future.
As of earlier this year, the two subsidiaries had already paid £5.5 million, though the timing and final amount of the remaining payments have not yet been determined.
Meanwhile, Viagogo is also facing a wider review of the secondary ticketing market. New policies are expected that would cap resale prices in order to curb ticket scalping. If implemented in the UK, such measures could significantly impact Viagogo’s core business.
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