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Chancellor Rachel Reeves Expected to Increase Tax in Autumn Budget Despite Election Promise
Chancellor Reeves warns a £20-40 billion fiscal gap may force tax rises despite Labour's manifesto promise, aiming to avoid austerity and maintain public service funding.
- Chancellor Rachel Reeves signalled possible tax increases and declined to recommit to the Labour Party manifesto, saying `we will all have to contribute`, ahead of the autumn Budget on November 26.
- The Office for Budget Responsibility expected to downgrade productivity later this month will leave Chancellor Rachel Reeves needing to find around £20–30 billion a year, with a larger buffer pushing the hole closer to £30–40bn to avoid the 2022 mini‑budget crisis.
- Raising UK rates would hit Scotland via the Block Grant Adjustment, reducing the Scottish Budget by close to £1 billion with a 2p rise next year or £500 million with a 1p rise.
- Opponents demanded Reeves' removal if she breaks the pledge, and markets reacted by knocking sterling lower, while SNP Economy spokesperson Dave Doogan said Labour had `misled voters.`
- The Treasury is exploring targeted levies—including capital gains or property measures—and cuts to green levies to lower bills by 170 while protecting services and building headroom, senior Labour figures accept breaching the manifesto carries political risk but say a return to austerity would be `politically and economically impossible`.
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Reeves poised to raise income tax saying ‘each must do their bit’
Millions of workers are likely to be asked to pay higher taxes in this month’s Budget after Chancellor Rachel Reeves signalled she is considering hiking the basic rate of income tax during an unusual pre-Budget speech. The Chancellor refused to recommit to Labour’s election manifesto promises not to raise income tax, national insurance (NI) or VAT and warned voters “we will all have to contribute” to plugging the black hole in the nation’s finan…
·London, United Kingdom
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Coverage Details
Total News Sources14
Leaning Left3Leaning Right1Center3Last UpdatedBias Distribution43% Left, 43% Center
Bias Distribution
- 43% of the sources lean Left, 43% of the sources are Center
43% Center
L 43%
C 43%
14%
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