Particle.news
Download on the App Store
43 ARTICLES
·
4h ago

Reeves Declines To Rule Out Income Tax, NI or VAT Rises in Pre‑Budget Speech

She cited weaker productivity with higher borrowing costs as reasons to rebuild fiscal headroom.

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
Image
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

Overview

  • In a Downing Street address ahead of the 26 November Budget, the Chancellor said she will do what is right rather than popular and asked the public to "do our bit" to secure the finances.
  • Reeves set priorities of protecting the NHS, reducing national debt and improving the cost of living, framing choices as necessary to avoid a return to austerity.
  • Independent estimates put the fiscal shortfall in the £20–30 billion range, with the IFS flagging a need to find about £22 billion and the OBR expected to downgrade productivity.
  • One option under discussion is a 2p rise in income tax offset by a 2p cut in employee National Insurance, which the Resolution Foundation says could raise around £6 billion overall.
  • Analysts warn a tax‑swap would hit pensioners who do not pay NI, with AJ Bell estimating roughly £450 more tax a year for a £35,000 retirement income and over £1,000 for £65,000, as opposition figures attack a potential manifesto breach.