UK Treasury Extend Income Tax Freeze to Gather £7bn
UK Treasury dey consider to extend the income tax freeze pass 2028 to fill a possible £50 billion budget gap. Since 2021, dem don stop make adjustments for inflation inside the income tax threshold freeze, weh fit raise £51 billion every year by the end of the decade. Chancellor Rachel Reeves wan secure extra £7 billion every year without breaking Labour promise to no raise income tax rates, using the income tax freeze instead of rate increase or make National Insurance higher. The plan also dey target the gambling sector with one tax rate to make levies simpler: online bets 21%, retail bookmakers 15%, and racecourse bets no go dey charged new levies. Industry people warn say if tax rise sharply, fit cause up to 6,000 jobs loss and move dem go black-market platforms. Treasury go do consultations before the mid-November budget. Traders need watch UK fiscal policy closely cos the extended income tax freeze plus higher gambling tax fit affect consumer spending and risk appetite for the market.
Neutral
Di propuesta income tax freeze extension an gambling tax changes na wep broad fiscal measures wey no get plenty direct impact for cryptocurrency markets. Even though income tax threshold freeze fit reduce discretionary spending over time, e effect for retail crypto demand na indirect one. E same like how higher gambling taxes fit reduce some traders speculative behavior but e no go too change macro-crypto liquidity sharply. Historically, UK fiscal tightening never get much influence for global digital asset prices. For example, past budget surpluses from tax adjustments e only cause small changes for Bitcoin volatility, wey show say traders dey more react to global monetary policy and macroeconomic indicators like interest rates. Short term, market feeling fit remain stable as income tax freeze and no rate hikes fit align with current expectations. Long term, any reduction for consumer income fit small small reduce retail crypto adoption growth, but this kind of impact na small compared to bigger economic and regulatory factors. So, this news get neutral assessment for cryptocurrency markets.