Personnel Today quoted Transactional Tax Planning Partner Charlotte Sallabank in an article regarding the UK Budget, to be unveiled on 28 October. With inflation rising, increased defence spending needed and fiscal headroom shrinking, speculation has centred on higher taxes on bank profits rather than on direct employment costs.
Charlotte expects the chancellor to turn to the banking sector, potentially by raising the bank surcharge from 3 percent to its previous rate of 8 percent, along with possible restrictions on the use of carried-forward losses. She also foresees more robust tax enforcement and expanded anti-avoidance measures as the government looks for ways to fund public spending and cost-of-living support while maintaining business confidence.
The article notes the Institute for Fiscal Studies’s warning that higher inflation could require up to £35 billion in additional departmental funding by the end of the decade, and that the government’s fiscal headroom could fall to around £20 billion between 2029 and 2030, from £24 billion forecasted in March. It also reports calls from employers and human resources practitioners for measures to support hiring, skills and tribunal resourcing.
"How will the Budget affect HR and employment?" Personnel Today, October 23, 2026
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