Overview
- Officials told the Office for Budget Responsibility on Wednesday that the income tax rate rise had been withdrawn, with the list of major measures for the Budget rewritten.
- The Treasury is exploring narrower revenue options reported to include lower or frozen income tax thresholds, a gambling levy, higher charges on expensive properties, and limits on pension salary‑sacrifice arrangements.
- Markets moved on the reports, with 10‑year gilt yields rising to about 4.55% and the pound slipping against the dollar and euro, while equities also weakened.
- Political pressure shaped the shift, with Labour figures warning against breaking manifesto promises and No 10 courting business leaders as confidence wobbled before the fiscal statement.
- The Times reports a planned levy on limited liability partnerships has been dropped and an exit tax on wealthy leavers is in doubt, narrowing the menu as the Nov. 26 Budget timetable holds.