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Reeves Finalises Budget With Income Tax Rise Ruled Out, Smaller Measures Expected

Weak growth plus elevated borrowing make clarity on smaller tax choices crucial, not a headline income tax rise.

Overview

  • The chancellor will deliver the Autumn Budget on 26 November, seeking revenue to close a widely reported multi‑billion‑pound gap without breaking Labour’s core tax pledges.
  • Officials have confirmed a crackdown on illegal vapes, giving Border Force and HMRC on‑the‑spot seizure powers and fines of up to £10,000 for rogue traders.
  • Reporting points to a ‘smorgasbord’ of revenue options under consideration, including a two‑year extension of frozen income tax thresholds, higher gambling duties, property levies, and limits on pension salary‑sacrifice relief.
  • Economic readings show strain ahead of the statement, with weak November PMI signals, a fall in October retail sales, and borrowing above OBR projections as markets watch for fiscal credibility.
  • Politics sharpened in the run‑up, with Reeves saying she is “sick of people mansplaining,” opponents accusing her of playing a sexism card, experts describing a ‘lastminute.com’ process, and Starmer declining to rule out threshold freezes in a TV interview.