This article is from the source 'guardian' and was first published or seen on . The next check for changes will be
You can find the current article at its original source at https://www.theguardian.com/uk-news/2025/sep/03/rachel-reeves-autumn-budget-tax-increases
The article has changed 7 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Rachel Reeves’s autumn budget will take place on 26 November | Rachel Reeves’s autumn budget will take place on 26 November |
| (32 minutes later) | |
| As date set, chancellor acknowledges UK economy is ‘not working well enough for working people’ | As date set, chancellor acknowledges UK economy is ‘not working well enough for working people’ |
| Business live – latest news | Business live – latest news |
| Rachel Reeves has acknowledged that the UK economy is “not working well enough for working people” as she announced that her autumn budget will take place on 26 November, amid mounting speculation over tax increases. | Rachel Reeves has acknowledged that the UK economy is “not working well enough for working people” as she announced that her autumn budget will take place on 26 November, amid mounting speculation over tax increases. |
| The chancellor insisted on Wednesday that the economy “isn’t broken” but conceded there was “more to do”. | The chancellor insisted on Wednesday that the economy “isn’t broken” but conceded there was “more to do”. |
| She said: “Bills are high. Getting ahead feels tougher. You put more in, get less out. That has to change.” | She said: “Bills are high. Getting ahead feels tougher. You put more in, get less out. That has to change.” |
| Announcing the date of the budget, the Treasury said Reeves had commissioned the Office for Budget Responsibility (OBR) to prepare forecasts for the economy and public finances. The chancellor must give the independent watchdog 10 weeks’ notice. | Announcing the date of the budget, the Treasury said Reeves had commissioned the Office for Budget Responsibility (OBR) to prepare forecasts for the economy and public finances. The chancellor must give the independent watchdog 10 weeks’ notice. |
| The OBR has been revising its expectations for productivity over the summer, which have tended to be more optimistic than those of other independent institutions, including the Bank of England. The result of this review is widely expected to be a weaker growth forecast. | The OBR has been revising its expectations for productivity over the summer, which have tended to be more optimistic than those of other independent institutions, including the Bank of England. The result of this review is widely expected to be a weaker growth forecast. |
| If the projections put her on course to miss her fiscal rules, the chancellor is determined not to respond by reopening the spending review plans she set out earlier this year, and instead will seek tax increases. | If the projections put her on course to miss her fiscal rules, the chancellor is determined not to respond by reopening the spending review plans she set out earlier this year, and instead will seek tax increases. |
| Reeves is understood to have been exploring several tax-raising measures over the summer months amid concern that rising borrowing costs, a sluggish growth outlook, higher inflation and welfare U-turns could expose a shortfall in the government finances worth up to £40bn. | Reeves is understood to have been exploring several tax-raising measures over the summer months amid concern that rising borrowing costs, a sluggish growth outlook, higher inflation and welfare U-turns could expose a shortfall in the government finances worth up to £40bn. |
| The chancellor and the prime minister have, however, committed to sticking to Labour’s manifesto promise not to raise taxes on “working people”, including through income tax, national insurance and VAT. | The chancellor and the prime minister have, however, committed to sticking to Labour’s manifesto promise not to raise taxes on “working people”, including through income tax, national insurance and VAT. |
| The late November budget date will give Reeves time to prepare the ground for potential tax changes, raising the prospect of a high-stakes party conference season as Labour heads to Liverpool at the end of September. | The late November budget date will give Reeves time to prepare the ground for potential tax changes, raising the prospect of a high-stakes party conference season as Labour heads to Liverpool at the end of September. |
| With the government under pressure on the economy, and bond markets febrile, she plans to make a series of announcements in the run-up to the statement designed to increase growth. These are expected to include giving the green light to Northern Powerhouse Rail, and a number of fresh planning reforms. | |
| Reeves hopes to persuade the OBR to take these and other recent measures, including May’s India trade deal and EU reset, into account in its forecasts. She will also urge ministers at next week’s cabinet meeting to go further on slashing regulation. | Reeves hopes to persuade the OBR to take these and other recent measures, including May’s India trade deal and EU reset, into account in its forecasts. She will also urge ministers at next week’s cabinet meeting to go further on slashing regulation. |
| Keir Starmer has strengthened economic expertise in No 10 in recent days, including poaching Reeves’s deputy Darren Jones and hiring a new economic adviser, the former deputy Bank of England governor Minouche Shafik. | |
| These moves were widely seen as an effort by the prime minister to take closer control over economic policy – but Reeves’s allies insist she supports the shake-up. | These moves were widely seen as an effort by the prime minister to take closer control over economic policy – but Reeves’s allies insist she supports the shake-up. |
| Reeves has come under pressure from leftwing Labour MPs and campaigners to consider introducing a wealth tax. While the chancellor has privately ruled out such a step, she has been exploring options for raising more money from wealthier taxpayers, including changes to capital gains tax, as well as inheritance and property levies. | Reeves has come under pressure from leftwing Labour MPs and campaigners to consider introducing a wealth tax. While the chancellor has privately ruled out such a step, she has been exploring options for raising more money from wealthier taxpayers, including changes to capital gains tax, as well as inheritance and property levies. |
| Sign up to Business Today | Sign up to Business Today |
| Get set for the working day – we'll point you to all the business news and analysis you need every morning | Get set for the working day – we'll point you to all the business news and analysis you need every morning |
| after newsletter promotion | after newsletter promotion |
| There are hopes in the Treasury that news from Britain’s economy could improve before budget day, helping the chancellor to strike a more upbeat tone after a difficult first year in power. | There are hopes in the Treasury that news from Britain’s economy could improve before budget day, helping the chancellor to strike a more upbeat tone after a difficult first year in power. |
| The chancellor could benefit from updated International Monetary Fund forecasts at its annual meeting in Washington in mid-October. | The chancellor could benefit from updated International Monetary Fund forecasts at its annual meeting in Washington in mid-October. |
| However, there are concerns the outlook for the economy could worsen amid pressure from Donald Trump’s trade war and rising inflationary pressures hitting the cost of living for households. | However, there are concerns the outlook for the economy could worsen amid pressure from Donald Trump’s trade war and rising inflationary pressures hitting the cost of living for households. |
| Business leaders also warn that a tax-raising autumn budget would add to the headwinds facing the economy, hitting growth and adding to the financial strain on households. | Business leaders also warn that a tax-raising autumn budget would add to the headwinds facing the economy, hitting growth and adding to the financial strain on households. |
| Reeves is also wary of spooking bond markets, which the government relies on to fund its borrowing. The yield, or interest rate, on 30-year UK government bonds hit a new 27-year high on Wednesday, at 5.747%. | Reeves is also wary of spooking bond markets, which the government relies on to fund its borrowing. The yield, or interest rate, on 30-year UK government bonds hit a new 27-year high on Wednesday, at 5.747%. |
| Yields on longer terms have been rising across major economies in recent weeks amid a borrowing splurge by the US, and Trump’s attacks on the independence of the Federal Reserve. | Yields on longer terms have been rising across major economies in recent weeks amid a borrowing splurge by the US, and Trump’s attacks on the independence of the Federal Reserve. |
| Defending the government’s record on the economy, Reeves pointed to changes such as raising the minimum wage for 3 million people. | Defending the government’s record on the economy, Reeves pointed to changes such as raising the minimum wage for 3 million people. |