‘More than a hundred tax and spending plans’ being considered by Reeves ahead of Budget
Why more than 100 new measures could be announced in the Budget
- The Chancellor Rachel Reeves is reportedly considering over a hundred tax and spending measures for the upcoming Budget to address a potential £50bn black hole in public finances.
- The Office for Budget Responsibility (OBR) is expected to downgrade the UK's productivity performance, which could widen the public finance gap by an additional £20bn.
- Measures under consideration include increasing income tax, potentially targeting the top third of earners, while Treasury officials aim to protect the incomes of the lower two-thirds.
- These potential tax increases could breach Labour's manifesto pledge not to raise income tax, VAT, or national insurance.
- Both the Prime Minister and Defence Secretary have recently refused to reaffirm Labour's commitment to this manifesto pledge, citing changing economic forecasts.