Overview
- In a Downing Street address, the chancellor said “each of us must do our bit” and declined to rule out increases to income tax, VAT or National Insurance.
- Treasury discussions are reported to include a Resolution Foundation plan to raise income tax by 2p while cutting employee National Insurance by 2p to broaden who pays.
- Reeves cited weaker productivity and higher borrowing costs, signalled she will avoid austerity or extra borrowing, and said she wants larger fiscal headroom.
- Markets fell after the remarks, with sterling dropping to a six‑month low and UK equities slipping before partially recovering.
- Opposition parties accused her of preparing a manifesto U‑turn, and Conservative shadow chancellor Mel Stride said she should be sacked if she raises taxes in the 26 November statement.