---
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"
date: 2025-11-24
canonical: "https://www.share-talk.com/goldman-sachs-warns-of-30bn-tax-rise-in-reeves-budget-plans/"
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"]
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"
---

# Goldman Sachs warns of £30bn tax rise in Reeves’ Budget plans

**Published:** November 24, 2025
**Author:** sharetalk
**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)

---

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**.

The 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.

Goldman 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.

Economist **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.

“An extension of threshold freezes combined with a series of smaller measures now looks the most likely avenue to raise revenues,” he said.

Goldman 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**.

The projections suggest Reeves faces a delicate balancing act as she attempts to ease cost-of-living pressures while maintaining fiscal credibility.

---

**Original URL:** https://www.share-talk.com/goldman-sachs-warns-of-30bn-tax-rise-in-reeves-budget-plans/
*Created by [WP Markdown Endpoint](https://wpmarkdownendpoint.com/)*