Overview
- Rachel Reeves has not ruled out breaking Labour’s tax pledge and, according to The Times, has included an income tax increase in measures sent to the OBR for the Nov. 26 Budget.
- The Times reports she is weighing a 2p rise in income tax with a targeted cut to national insurance and an extension of frozen income tax thresholds to 2029–30.
- The CBI urges the Chancellor to prioritise building real fiscal headroom and avoid further business tax hikes, echoing NIESR’s call for a buffer of about £30bn.
- Labour tensions have surfaced, with deputy leader Lucy Powell and left MPs warning against breaching the manifesto promise on income tax, national insurance and VAT.
- The Bank of England notes investment and spending are being delayed due to uncertainty over tax plans, while wealth managers and entrepreneur groups warn higher or wealth-focused taxes could deter UK investment.