Overview
- Reeves informed the OBR on Wednesday that previously submitted plans to raise income tax have been discarded, according to multiple reports.
- The Treasury is developing a mix of narrower measures such as a gambling levy and higher charges on high‑value properties, with an extension of the income‑tax threshold freeze still expected.
- Pension policy changes are being prepared, including proposals to cap salary‑sacrifice pension contributions that currently avoid National Insurance.
- Financial markets reacted to the reported change of course, with gilt yields rising and sterling weakening as investors reassessed the fiscal outlook.
- Updated OBR projections have reportedly reduced the fiscal hole to about £20bn, giving Reeves more headroom as she finalizes the 26 November Budget.