Overview
- Asked to reaffirm Labour’s pledge not to raise income tax, VAT or National Insurance, the Chancellor declined and said she would do what is right rather than what is popular.
- She set priorities of cutting NHS waiting lists, reducing the national debt and easing the cost of living, arguing that tough choices are needed to avoid a return to austerity.
- Independent estimates from the IFS and the Resolution Foundation suggest roughly £22–£26 billion is needed, with the OBR expected to downgrade productivity and tighten the fiscal outlook.
- Multiple reports say a Resolution Foundation–style “2p up, 2p down” switch—raising income tax by 2p and cutting employee NI by 2p—is under consideration; AJ Bell warns pensioners, who do not pay NI, could pay around £450 more on £35,000 and about £1,049 more on £65,000.
- The Treasury said it would not comment on tax speculation, and Conservative figures accused Reeves of preparing to break promises, but final decisions will not be confirmed until the 26 November Budget.