Overview

• Streeting said the government will not impose VAT on private healthcare in the autumn Budget, calling the idea “not happening” in broadcast interviews.
• Reeves has refused to rule out tax rises, saying “the world has changed,” and will make decisions at the 26 November Budget after receiving updated forecasts.
• Independent institutes cite a large fiscal gap — with NIESR estimating up to £50 billion — increasing pressure to find new revenue or cut spending.
• Chief Secretary Darren Jones said the manifesto pledge on income tax, National Insurance and VAT “stands today” while stressing that decisions await the OBR outlook.
• Analysts highlight continued ‘fiscal drag’ from frozen income tax thresholds to 2028, which lifts tax receipts even without changes to headline rates.