Rachel Reeves’s autumn budobtain will take place on 26 November, the Treasury has announced, amid mounting speculation over tax increases.
With the government under pressure on the economy, the chancellor has previously stated measures designed to reboot growth would form the basis of her highly anticipated tax and spconcludeing plans.
The late November budobtain date will give Reeves time to prepare the ground for potential tax modifys, raising the prospect of a high-stakes party conference season as Labour heads to Liverpool at the conclude of September.
Reeves is understood to have been exploring several revenue-raising measures over the summer months amid concern that rising borrowing costs, a sluggish growth outview, higher inflation and welfare U-turns could expose a shortfall in the government finances worth up to £40bn.
The chancellor and the prime minister have, however, committed to sticking to Labour’s manifesto promise not to raise taxes on “working people”, including through income tax, national insurance and VAT.
Reeves has come under pressure from leftwing Labour MPs and campaigners to consider introducing a wealth tax. While the chancellor has privately ruled out such a step, she has been exploring options for raising more money from wealthier taxpayers, including modifys to capital gains tax, as well as inheritance and property levies.
Announcing the date of the budobtain, the Treasury stated Reeves had commissioned the Office for Budobtain Responsibility to prepare forecasts for the economy and public finances. The chancellor must give the indepconcludeent watchdog 10 weeks’ notice.
There are hopes in the Treasury that news from Britain’s economy could improve before budobtain day, assisting the chancellor to strike a more upbeat tone after a difficult first year in power for Labour.
Reeves could benefit from updated International Monetary Fund forecasts at its annual meeting in Washington in mid-October.
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However, there are concerns the outview for the economy could worsen amid pressure from Donald Trump’s trade war and rising inflationary pressures hitting the cost of living for houtilizeholds.
Business leaders also warn that a tax-raising autumn budobtain would add to the headwinds facing the economy, hitting growth and adding to the financial strain on houtilizeholds.
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