Overview
- Independent forecasts point to weaker growth and tight fiscal rules, with the Office for Budget Responsibility expected to downgrade outlook each year of the forecast horizon.
- Measures expected include extending the freeze on income tax and National Insurance thresholds for two more years and imposing a roughly £2,000 cap on pension salary‑sacrifice contributions.
- Property changes are reported to target high‑value homes through revaluing top council tax bands and an extra charge on properties worth over about £2m, alongside possible ISA allowance cuts, a gambling levy and a per‑mile charge for electric vehicles.
- Cost‑of‑living steps flagged include a national living wage rise to £12.71, a rail fares freeze, cuts to green levies on electricity bills and an above‑inflation state pension increase, with the two‑child benefit cap widely reported to be scrapped.
- Rachel Reeves has appealed for Labour unity after leaks and reversals drew criticism from business leaders, while officials prepare to pencil in late‑parliament departmental cuts that analysts warn could prove hard to deliver.