Overview
- Rachel Reeves will use a Downing Street speech to frame a Budget built around fairness, with priorities of protecting the NHS, easing living costs and reducing debt.
- Government and media reports say officials are exploring ways to shield earners below roughly £45,000–£46,000, effectively focusing new measures on higher‑paid workers.
- The Office for Budget Responsibility’s weaker productivity outlook has enlarged the fiscal gap, with outside estimates suggesting tens of billions may be needed to rebuild headroom.
- The Resolution Foundation’s option of a 2p rise in income tax offset by a 2p cut in employee National Insurance is under consideration, which would raise revenue while shifting more of the burden to groups not paying NI; the Treasury is not confirming any measures.
- Potential policies reported to be on the table include new higher council tax bands or a mansion‑style property levy, further freezes on income tax thresholds, and cuts to reliefs on pensions and unearned income, as opposition figures warn of political consequences if manifesto tax pledges are broken.