Chancellor John Healey considers online marketplace tax crackdown for first budget

The Guardian reported that Chancellor John Healey is drawing up a tax crackdown on online marketplaces for his first budget. According to a report by The Times cited by The Guardian, the measure could raise up to 1 billion pounds more for the Treasury. The plan targets major platforms such as Amazon and eBay. [1]

Under the proposed rules, online marketplaces would become responsible for collecting tax owed by retailers who sell on their platforms. The Guardian noted that the move specifically aims to stop foreign retailers from exploiting weak rules and enforcement to avoid paying VAT on their sales in the United Kingdom. [1]

John Healey has served as Chancellor of the Exchequer under Prime Minister Andy Burnham since 20 July 2026. He has been the Member of Parliament for Rawmarsh and Conisbrough, previously Wentworth and Wentworth and Dearne, since 1997. He previously held cabinet and junior ministerial roles under Keir Starmer, Tony Blair, and Gordon Brown. [6]

As FTMQ News reported earlier, the upcoming budget faces significant financial pressures. The Institute for Fiscal Studies warned Chancellor John Healey of a funding gap of up to 35 billion pounds, driven by higher inflation due to the war in Iran. The International Monetary Fund has also advised the chancellor to maintain plans to repair public finances and avoid higher spending ahead of his first budget presentation on 28 October. [8][9]