Labour’s got their paws on your purse again, folks, and this time they’re sniffing around your kids’ clothes with a 20% VAT grab. The 2025 budget rumors, stoked by Chief Secretary Darren Jones’ cagey July 2025 comments, suggest slapping VAT on children’s clothing—previously zero-rated to keep families from going broke over school uniforms and tiny trainers. The Institute for Fiscal Studies (IFS) pegs the cost of zero-rate exemptions at £100 billion in forgone revenue, and Labour’s eyeing that pot to plug their fiscal black hole. But who pays? You, juggling bills while HMRC plays Scrooge.
Monty, my grumpy beagle, is ready to bury this policy in the garden. “Tax my pup’s parka? I’ll shred their budget!” he snarls, dreaming of a treat-filled rebellion. He’s not wrong. The 2025/26 VAT rates remain: 20% standard (most goods, like your phone or takeaway), 5% reduced (domestic fuel, children’s car seats), and 0% zero-rate (currently kids’ clothes, books, most food). But the kicker? Labour’s confirmed 20% VAT on private school fees from January 2025, and children’s clothing could be next, hitting families where it hurts.
Newer data from 2025 shows the poorest 20% of households spend 10.1% of their income on VAT, up from 9.7% in 2021/22, while the richest 20% spend just 4.9%, up from 4.7% (Taxually, Feb 2025). That’s a regressive punch—low-income families, already stretched, face a heavier burden if VAT creeps onto essentials like kids’ jumpers. A £15 school blazer would jump to £18 with 20% VAT, and a £10 pair of wellies would cost £12. For a family with two kids, that’s hundreds extra a year.
Labour claims it’s about “fairness,” but Monty calls it a scam. “Fairness? Tell that to the mum skipping meals to buy school socks!” he barks. The IFS notes zero-rates are inefficient, benefiting the rich too, but taxing kids’ clothes doesn’t fix inequality—it just squeezes the poorest harder. Meanwhile, the VAT registration threshold rose to £90,000 in April 2024, keeping 28,000 micro-businesses out of VAT but doing zilch for consumers facing higher costs.
What’s the move? Monty’s plotting to chew up tax forms, but you can fight smarter. What’s the dumbest VAT target you’ve seen? Drop it in the comments and let’s make more noise than Monty chasing the postman. Take our poll: VAT on kids’ clothes or dog treats—pick your poison! Share this with #UKVAT2025 and call out this wallet-draining nonsense!