Overview
- At PMQs, the prime minister declined to confirm whether the government will prolong the current income tax threshold freeze beyond 2028, leaving a widely reported option on the table a week before the 26 November Budget.
- Extending the freeze to 2030 is under consideration according to multiple reports, a move that would raise about £8 billion a year through fiscal drag and draw more earners, including some pensioners, into paying income tax.
- Official data show inflation eased to 3.6% in October, offering Chancellor Rachel Reeves limited relief as she seeks to close a multibillion‑pound gap to meet the government’s fiscal rules.
- A government source has signalled no increase in income tax rates, after reports last week that a planned rate rise was abandoned on improved forecasts, a sequence that drew criticism over leaks and market jitters.
- Starmer has insisted he will lead Labour into the next general election, even as reports point to organised unrest on the party’s soft left, with claims that roughly 80 MPs could back a leadership challenge.