Rachel Reeves’s autumn budget will take place on 26 November
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https://www.theguardian.com/uk-news/2025/sep/03/rachel-reeves-autumn-budget-tax-increases Version 0 of 7. Treasury reveals date as speculation rises over potential tax increases to plug deficit in public finances of up to £40bn Business live – latest news Rachel Reeves’s autumn budget will take place on 26 November, the Treasury has announced, amid mounting speculation over tax increases. With the government under pressure on the economy, the chancellor has previously said measures designed to reboot growth would form the basis of her highly anticipated tax and spending plans. 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. Reeves is understood to have been exploring several revenue-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. 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. Announcing the date of the budget, the Treasury said Reeves had commissioned the Office for Budget Responsibility to prepare forecasts for the economy and public finances. The chancellor must give the independent watchdog 10 weeks’ notice. 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 for Labour. Reeves could benefit from updated International Monetary Fund forecasts at its annual meeting in Washington in mid-October. 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 after newsletter promotion 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. |