Overview

• Declaring that “the world has changed,” the chancellor kept revenue options open for the Autumn Budget, refusing to guarantee she will not extend the income tax threshold freeze and declining to rule out changes to VAT.
• She cautioned Labour figures against abandoning fiscal rules or borrowing more, a pointed rebuttal widely interpreted as aimed at Andy Burnham’s calls for looser constraints.
• Economists place the fiscal gap in the tens of billions, with estimates up to £50 billion, and think tanks are urging reforms that could broaden the tax burden to average earners.
• Reeves set out policy moves including a Youth Guarantee with paid placements after 18 months out of work, a library in every English primary school, and support for Northern Powerhouse Rail.
• A pro‑Palestinian heckler briefly halted her speech, she reiterated recognition of a Palestinian state, and Prime Minister Keir Starmer publicly voiced support as Budget decisions are prepared.