Overview
- Rachel Reeves declined to restate Labour’s pledge not to raise income tax, National Insurance or VAT, saying each person must "do our bit" ahead of the 26 November Budget.
- The Chancellor set priorities of cutting NHS waiting lists, reducing national debt and easing the cost of living, saying she will do what is necessary rather than what is popular.
- The Office for Budget Responsibility is expected to downgrade productivity, with economists putting the fiscal shortfall at roughly £20–30 billion and some estimates higher.
- A reported Resolution Foundation ‘switch’ — a 2p income tax rise paired with a 2p cut to employee National Insurance — is being discussed as a way to raise revenue while protecting most workers.
- Analysts warn pensioners would be hit because they do not pay NI, with AJ Bell estimating around £450 extra tax a year on £35,000 of retirement income and about £1,049 on £65,000; Conservatives urged Keir Starmer to sack Reeves if she breaks the pledge.