{"id":129612,"title":"Goldman Sachs warns of £30bn tax rise in Reeves’ Budget plans","publisher":"Share Talk","author":"sharetalk","published":"2025-11-24T11:27:33+00:00","modified":"2025-11-24T11:27:33+00:00","canonical_url":"https://www.share-talk.com/goldman-sachs-warns-of-30bn-tax-rise-in-reeves-budget-plans/","markdown_url":"https://www.share-talk.com/goldman-sachs-warns-of-30bn-tax-rise-in-reeves-budget-plans.md","json_url":"https://www.share-talk.com/goldman-sachs-warns-of-30bn-tax-rise-in-reeves-budget-plans.json","category":"B2B","categories":["B2B","Blogs","Business & Support Services","Financial","Technology","Technology, Media & Telecoms"],"tags":["Chancellor","childcare","consumers","Coverage","domestic","energy bill","England","Federal Reserve","FTSE 100","FTSE 250","FTSE100","Goldman Sachs","household","Inflation","investors","London","Prime Minister","Share Talk","The Bank of England","Treasury","UK"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2024/05/Goldman-Sachs.webp?fit=1200%2C800&ssl=1","format":"news","language":"en-GB","content":"Rachel Reeves is expected to raise taxes by around **£30bn** as she prepares to lift the two-child benefit cap, according to new forecasts from **Goldman Sachs**.\n\nThe Wall Street bank estimates the Chancellor is already facing a **£20bn hole in the public finances**, while additional commitments — including freezing fuel duty, increasing the benefit cap and providing support for household energy bills — will add a further **£8bn** to the burden.\n\nGoldman also expects Reeves to rebuild her fiscal headroom by **£5bn**, bringing the total funding requirement to roughly **£33bn**. Of that, only around **£3bn** is likely to be met through spending cuts, meaning the bulk will need to come from tax rises.\n\nEconomist **James Moberly** said a series of smaller tax measures now looks far more likely after the Government reportedly stepped back from plans to raise income tax rates.\n\n“An extension of threshold freezes combined with a series of smaller measures now looks the most likely avenue to raise revenues,” he said.\n\nGoldman estimates that freezing fuel duty alone would cost around **£3bn next year**, falling to roughly **£800m in subsequent years**. Meanwhile, removing environmental levies from energy bills is expected to cost about **£4.3bn in the near term**, easing to around **£3.5bn by 2029**.\n\nThe projections suggest Reeves faces a delicate balancing act as she attempts to ease cost-of-living pressures while maintaining fiscal credibility."}