UK (Parliament Politics Magazine) – Chancellor Rachel Reeves will deliver the Autumn Budget on 26 Nov, facing pressure over rising borrowing, slow growth, and potential tax changes.
As reported by The Guardian, Rachel Reeves will unveil her autumn budget on 26 November amid rising speculation over tax increases.
What will Rachel Reeves include in her November budget amid rising economic pressures?
Rachel Reeves outlines her planned tax and spending policies designed to boost growth amid government economic challenges.
The late November budget gives Ms Reeves time to set out tax plans before Labour’s crucial party conference in Liverpool.
Insiders suggest the Chancellor has examined multiple revenue-raising options over the summer, as concerns grow over rising borrowing, sluggish growth, higher inflation, and welfare U-turns, which could create a £40bn gap in the Treasury budget.
The Chancellor and Prime Minister Sir Keir Starmer remained committed to Labour’s pledge not to raise taxes on working people, including income tax, national insurance, and VAT.
Labour’s leftwing MPs and campaigners are pressuring Ms Reeves to introduce a wealth tax. She has ruled it out privately but continues to explore revenue options, including capital gains, inheritance, and property levies.
Treasury’s views on Rachel Reeves’ budget plans and forecasts
The Treasury confirmed Rachel Reeves asked the Office for Budget Responsibility to prepare economic and finance forecasts, requiring 10 weeks’ notice.
Officials in the Treasury are optimistic that upcoming economic news will improve before the budget, helping the chancellor present a more positive message after Labour’s difficult start.
The chancellor could benefit from updated International Monetary Fund economic projections at its mid-October annual meeting in Washington.
Economic experts warn UK growth could weaken amid US President Donald Trump’s trade war and increasing household inflation. They also warn that higher autumn taxes could slow growth and strain household finances.
Rachel Reeves’ views on the UK economy
Rachel Reeves said the British economy
“isn’t broken, but I do know that it’s not working well enough for working people.”
In a video message, she posted on X, stated,
“Bills are too high and you feel you’re putting more in but getting less out and that has to change.”
The Chancellor stated that the UK holds “huge potential” and her goal since Labour came into power has been “fixing the foundations of the economy.”
She said,
“There are still challenges. The cost-of-living pressures, I know, are still very real. We need to bring inflation and borrowing costs down, and we do that by keeping a tight grip on day-to-day spending and by enforcing my non-negotiable fiscal rules.”
Ms Reeves stated,
“Renewal is our mission and growth is our challenge. Investment and reform are our tools, the tools to build an economy that works for you and your family and rewards you.”
She added,
“More pounds in your pocket, an NHS that is there when you need it and opportunities for all, including your kids and grandkids. Those are my priorities as Chancellor, they’re the priorities of the British people, and they’re what I’m absolutely determined to deliver.”
What did Lord O’Neill say about Keir Starmer, Reeves, and rising borrowing costs?
Lord O’Neill, former Goldman Sachs economist and ex-Treasury adviser, blamed PM Sir Keir Starmer and Rachel Reeves’s welfare U-turns for record borrowing costs.
He said,
“Ever since the climbdown on welfare reform I’ve been watching the markets more closely. As the summer’s gone on I’ve got more bothered. On days where US and German bond yields go down, ours don’t go down as much. On days where theirs go up, ours tend to go up more than theirs.”
The peer stated,
“So there’s been nothing that dramatic on any one day but it’s been a slow drip, drip, drip to further deterioration which is not a good sign.”
Referring to the upcoming budget, he said,
“For Rachel and the Prime Minister, it’s kind of decision time. It’s like ‘what do you really want to prioritise?”
The peer added,
“There are three or four really big things which have to be tackled if we’re going to solve our fiscal challenges. I would put into that the triple lock, the property market, welfare reform and much more focus on getting better productivity and returns out of how much money we keep piling into the NHS.”
What did the YouGov poll reveal about Sir Keir Starmer’s future leadership?
A YouGov poll shows 53% of UK adults think Sir Keir Starmer is unlikely to lead Labour at the next national election in 2029.
Around a third 32% expect Mr Starmer to continue as Labour leader, while 15% were unsure. Over half of 2024 voters 52% expect Mr Starmer to stay as leader, while 37% disagree.