Reeves Prepares UK for Tax Rises Ahead of Nov. 26 Budget

Overview

• Delivering an unusual pre-budget address, the finance minister said broad increases are on the table to protect public services, avoid a return to austerity, and bring down debt.
• Treasury officials have drafted options to help close a potential gap of up to £35 billion, with measures largely focused on higher earners and wealth.
• Reported options include council tax reforms, keeping income tax thresholds frozen, extending National Insurance to certain partnerships and property owners, and new charges on online gambling.
• The Times reported that a 20% levy on wealthy individuals departing for tax havens is being considered, an idea tax experts warn could spur early exits and blunt revenues.
• Reeves is expected to lean on an OBR downgrade to productivity that could worsen the fiscal picture by about £20 billion, and markets responded to her speech with long gilt yields falling as the pound slipped to a seven‑month low.