Overview
- Pressed by Kemi Badenoch at PMQs, Keir Starmer declined to restate Labour’s vow not to raise income tax, National Insurance or VAT, a shift from his one-word “yes” in July.
- The Office for Budget Responsibility is expected to cut its productivity forecast by about 0.3 percentage points, with analysts estimating a £20bn–£30bn hit to the public finances.
- Reports say Chancellor Rachel Reeves is weighing revenue options that include adding 1p–2p to income tax, extending freezes to tax thresholds, a 1% mansion tax on properties over £2m, and higher council tax bands.
- Some outlets report a possible 2p cut to National Insurance paired with a 2p rise in income tax rates, a swap said to raise roughly £20bn and shift costs toward people who do not pay NI such as many pensioners.
- Conservative leaders escalated pressure by urging Starmer to sack Reeves if she raises taxes, sterling weakened on downgrade reports, and the Autumn Budget is scheduled for 26 November.