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2h ago

CBI Urges Reeves to Break Tax Pledge to Build Fiscal Buffer as Blair Institute Calls for Temporary Hikes

Independent forecasts point to a roughly £30bn headroom need, sharpening choices over personal taxes versus further business levies.

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Britain's Chancellor of the Exchequer Rachel Reeves takes journalists' questions after delivering a speech in the media briefing room of 9 Downing Street, central London, on November 4, 2025, ahead of the forthcoming Budget. JUSTIN TALLIS/Pool via REUTERS/File Photo
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Britain's Chancellor of the Exchequer Rachel Reeves delivers a speech in the media briefing room of 9 Downing Street, central London, on November 4, 2025, ahead of the forthcoming Budget. JUSTIN TALLIS/Pool via REUTERS

Overview

  • Rachel Reeves has signalled tax rises are likely in the 26 November Budget and declined to recommit to Labour’s promise not to raise income tax, national insurance or VAT.
  • The CBI says business taxes are at a 25-year high and warns against further corporate hikes, urging the Chancellor to create real fiscal headroom even if that means raising personal taxes.
  • The Tony Blair Institute argues any major revenue move should be temporary and paired with pro‑growth measures such as scrapping stamp duty on shares, easing visa routes, and adjusting planned employment rights.
  • NIESR advises building about £30bn of fiscal headroom to meet fiscal rules, reinforcing pressure for near‑term revenue or spending decisions.
  • Entrepreneur surveys report heightened fears of higher taxes and potential founder relocation, while some Labour MPs publicly caution that breaking the pledge could damage trust.