Almost half of voters support tax rises to enhance public services

In October 2023, UK Chancellor Rachel Reeves announced a significant budget which included £40 billion in tax increases aimed at improving public services such as the NHS and schools. A survey conducted by academics at the University of Bristol, involving 5,800 respondents, revealed that while 48% believed these tax hikes were necessary, a majority anticipated feeling financially worse off due to them. The largest single measure was a £25 billion hike in employer national insurance contributions. Support varied sharply along political lines, with Labour voters showing greater acceptance compared to those from Reform UK who largely disapproved of the increases. Despite the challenges posed by these tax increases, Mubin Haq of the abrdn Financial Fairness Trust noted that the public recognizes the pressing need for investment in essential services. This was particularly applicable given the strain on schools, hospitals, and other services that require urgent funding. More than half of the surveyed participants (57%) expected to be worse off as a result of these measures, a sentiment more prevalent among older voters who faced the loss of the winter fuel allowance. This demographic was likely also concerned about the long-term impacts of reduced financial support on their livelihoods. The public sentiment regarding the specifics of Reeves's proposed tax measures showcased a broad spectrum of acceptance and opposition. Raising inheritance tax, particularly on farms, received significant pushback, with 45% of respondents opposing it. Conversely, a majority was in favor of imposing VAT on private school fees, indicating a potential willingness to restructure financial obligations in the education sector. The survey also highlighted that there was little support for other types of tax increases in the future, suggesting a careful balance the government would need to navigate going forward. Political analysts anticipate that Reeves may need to consider additional tax increases by the end of her parliamentary term to avert budget constraints on crucial departments. While Reeves committed to cutting wasteful spending and avoiding new borrowing or more taxes, the public's lukewarm response to taxation underscores the difficult negotiation between fiscal responsibility and public demand for quality services. The study reveals a complex landscape where voters desire enhanced public services but are simultaneously wary of the financial implications of funding them.