Overview
- Ministers declined to repeat Labour’s pledge not to raise income tax, National Insurance or VAT, saying decisions await final OBR figures and Budget judgments.
- Multiple reports say Treasury thinking defines “working people” as the bottom two‑thirds of earners, roughly £45,000 or less, implying higher earners could be targeted.
- Options under discussion include a basic‑rate income tax rise, higher property levies such as new or higher council tax bands, curbs to pension tax reliefs, and a 20% charge on wealthy leavers.
- Analysts estimate the package could raise around £40 billion to rebuild fiscal headroom, with Capital Economics suggesting a growth impact of about minus 0.3%.
- Coverage indicates protecting NHS funding is a priority, while Reeves aims to meet fiscal rules that require eliminating the current budget deficit by 2029/30.