Overview
- Rachel Reeves told Labour MPs to back the Budget as a single package, conceding that some elements may be unpopular.
- The OBR is reported to have downgraded growth in every year to 2029, reducing tax revenues even as ministers brief that there may be slightly more short‑term headroom.
- The chancellor has ruled out raising headline income tax rates, with reports pointing to extended freezes of income tax and National Insurance thresholds and a new £2,000 cap on salary‑sacrifice pension contributions.
- Media reports say targeted measures under consideration include a levy on homes valued above £2 million and a cut to the cash ISA limit to about £12,000.
- Economists and market strategists caution that relying mainly on tax rises without credible spending control could lift gilt yields and weaken the pound, after months of leaks that they say have already hurt confidence.