Many have been speculating about what Rachel Reeves’ Autumn Budget will hold, in particular how taxes could be impacted.

Should the single person Council tax discount be cut? Vote now (Image: GETTY)

Now millions may see their Council Tax bills increase if the 25 percent single person discount is scrapped.

Sir Keir Starmer has refused to rule out the move, sparking concerns for millions – including pensioners who will have already had their winter fuel payment cut.

Scrapping the discount would mean millions who live alone, including pensioners and single parents, could see their Council Tax bill soar next year.

The cut would save the Government around £3bn annually according to estimates from The Institute for Fiscal Studies.

Taxpayers’ Alliance found the average increase for someone in England living in a Band D home would be around £549. This would equate to £515 in Wales and £353 in Scotland.

However, the true cost would vary based on area and experts are concerned of the impact this could have on pensioners.

More than four million pensioners would be impacted if the discount is scrapped, many of whom receive the state pension.

Caroline Abrahams, of Age UK, said: “Many older people are reeling from the news that they are losing their winter fuel payment, so we fervently hope that there are no more nasty surprises to come.”

This comes as Reeves said the Budget on October 30 would need “difficult decisions on tax, spending, and welfare,”.

While Conservative leadership candidate Robert Jenrick accused Sir Keir of waging a “war on pensioners” if he goes ahead with the council tax cut.

He said: “Under Labour, pensioners could be nearly £1,000 a year worse off, which for many is a cost they simply can’t afford.

“Keir’s war on pensioners is putting Labour’s own political interests above any sense of right and wrong.”

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Labour tax raid on ISA savings alert as experts explain action needed before Budget

Chancellor Rachel Reeves is set to announce her budget on October 3 (Image: Getty)

A financial expert has warned that people with cash in ISAs could be at risk if Labour decides to make a tax raid on their savings. Speculation is growing about how the government plans to fill in a £22 billion black hole in the public finances it says it inherited from the last Conservative government.

Dan Neidle, a tax lawyer and the founder of the consultancy Tax Policy Associates said tax-free Isas could be in the firing line in an article in The Times. Currently all gains and interest earned in individual savings accounts (Isas) are tax-free for life — but this relief cost the government £4.9 billion in 2022–23 and is expected to cost about £6.7 billion in 2023–24.

People can can save up to £20,000 into Isas each year and there is no limit to the amount you can hold over a lifetime. Mr Neidle said that capping tax relief at £100,000 on money held in these accounts could raise about £5 billion this tax year.

If this happened and you had £500,000 in Isas you could have to pay tax on any interest or dividends paid on £400,000 of your savings at your income tax rate.

Mr Neidle said any tax raid would be unlikely to be backdated. “People have saved for years into their Isa on the promise of this particular tax treatment and many would see it as hugely unfair to change this. I don’t think the government would do that.” The Conservatives’ plans for a British Isa, which would have given an additional £5,000 tax-free allowance to those investing in British stocks, have reportedly been abandoned by the government.

But Sir Keir Starmer has warned the Budget on October 30 will be “painful” as he paved the way for tax rises. Isas remain the most effective way to shield your savings and investments from any tax changes.

According to the Telegraph a family of four could put as much as £116,000 in Isas between now and April 7 2025 using the full allowances available for the 2024-25 and 2025-26 tax years.

It takes minutes to set up an Isa or self-invested personal pension (Sipp) as long as you have personal and bank account details and National Insurance numbers. Quilter has estimated that individuals with £20,000 outside of an Isa will lose £135 or £335 this year, depending on their income tax bracket, due to the capital growth being lost to capital gains tax and dividend tax.

Shaun Moore, of Quilter, said: “Lower allowances and higher interest rates mean you will likely find that your personal savings allowance, CGT annual exempt amount and dividend allowance will be decimated very quickly. Even only relatively small gains can waste huge amounts of your allowances next tax year and therefore the sooner assets can be in a tax-sheltered environment like an Isa the better.”

As of April 2024 savers can open as many Isas as they want, where previously they could only open one of each type. This will allow savers to more easily take advantage of the top savings rates in the cash Isa market.