Overview

• Chancellor Rachel Reeves reaffirms her manifesto promise not to raise income tax, VAT or national insurance rates for working people under non-negotiable fiscal rules
• Transport Secretary Heidi Alexander and Treasury Chief Secretary Darren Jones decline to define “modest incomes” or rule out further tax rises for middle-income earners
• Former Labour leader Lord Kinnock’s call for a 2 percent levy on assets exceeding £10 million gains traction as ministers keep a wealth tax under active consideration
• Continuing freezes on income tax thresholds could pull an estimated 8.66 million more workers into higher rates through fiscal drag without altering headline rates
• Bank of England governor Andrew Bailey warns that recent employer NIC hikes are slowing hiring and signals a possible interest rate cut to support a slowing economy