Overview
- Financial Times reporting says the Chancellor has withdrawn plans to raise income tax and notified the OBR on Wednesday as part of a late rewrite of the Budget package.
- The Treasury faces a sizeable fiscal shortfall widely cited at around £30bn, with estimates in some analyses running higher, constraining options before the 26 November Budget.
- Options under consideration, according to multiple reports, include cutting or extending freezes to income tax thresholds, new levies on gambling and high‑value property, and possible pension tax changes.
- UK assets slipped following the reports, with gilt yields rising in early trading and sterling down about 0.3% against the dollar and euro.
- Political and stakeholder reaction intensified, with Labour figures warning against breaking manifesto pledges, opposition parties criticising a U‑turn, and No 10 engaging senior business leaders as Budget planning continues.