Overview
- At PMQs, Keir Starmer declined to restate Labour’s pledge not to raise income tax, national insurance or VAT, reversing the clear assurance he gave in July.
- Officials and reports say Rachel Reeves is weighing options including a 1p–2p income tax rise, extending freezes to thresholds, and new property levies, with HMRC estimating a 1p basic-rate rise could raise about £8.2bn.
- No 10 framed the Budget as a choice between investing to support growth or returning to cuts, while Reeves signalled she wants larger headroom even as she talks up improving economic indicators.
- Kemi Badenoch said Reeves should be sacked if she raises taxes, and senior Conservatives plan to press for spending cuts instead at a pre‑Budget rally.
- Some Labour MPs are urging a shift to a proportional property tax and scrapping stamp duty, as sterling fell on reports the OBR will cut productivity forecasts by around 0.3 percentage points.