Overview
- Government sources say more than a hundred tax and spending options are being drawn up for the 26 November Budget, with reported internal guidance to protect the bottom two-thirds of earners.
- The OBR’s latest projections include a roughly 0.3 percentage-point cut to productivity, a change expected to add about £20 billion to borrowing without policy action.
- Senior ministers declined to restate Labour’s pledge not to raise income tax, national insurance or VAT, as officials consider whether income tax increases may be required.
- Reported measures under review include tighter pension tax reliefs for higher earners, new higher council tax bands or a mansion tax, and a proposed 20% exit charge on wealthy Britons moving to low-tax jurisdictions.
- Nigel Farage moved Reform UK away from its £90bn tax-cut promise, arguing major reductions are unrealistic until spending and borrowing are brought under control.