Source: The Independent – UK News
Published: 2025-11-03T09:05:56+00:00
Score: 6.00
Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email Email * SIGN UP I would like to be emailed about offers, events and updates from The Independent. The PM also refused to rule out extending the freeze on the personal tax allowance threshold, which drags more earners into paying income tax. Meanwhile, on Sunday, Cabinet minister John Healey warned there will be “consequences” from recent weaker economic forecasts at this month’s Budget – and declined to repeat Labour’s promises on tax. Asked whether the government would stick to its manifesto pledge not to raise income tax, national insurance or VAT, Mr Healey declined to repeat the promise. Things do change, and we’ll have the announcements that are needed to deal with those challenges in the Budget.”
Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email Email * SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our Privacy notice The chancellor is reportedly considering more than one hundred different tax and spending measures at the upcoming Budget, amid concerns the fiscal watchdog could be about to downgrade the UK’s productivity performance. Rachel Reeves is thought to be looking at hitting the top third of earners as part of an attempt to fill a black hole in the public finances of up to £50bn. The Office for Budget Responsibility (OBR) – which handed the chancellor its latest set of projections for the economy last week – is expected to downgrade the UK’s performance on productivity at the Budget, with fears that it could represent a further £20bn gap in the public finances. Chancellor Rachel Reeves will deliver her budget on November 26 (PA) ( PA Wire ) Sources told The Times that around a hundred tax and spending measures are on the table for the Budget, including an increase in income tax which would be a clear breach of Labour’s manifesto promise not to increase three key taxes on working people. However, they said there is still “considerable uncertainty” over the level of tax increases that are required to fill the looming black hole. “Nothing is decided and can’t be decided until we know exactly what the forecasts are,” the source said. Meanwhile, Sky News reported that Treasury officials are looking to protect the incomes of the lower two-thirds of earners – those earning less than £45,000. The latest reports come after the prime minister on Wednesday declined to say he would stand by Labour’s manifesto pledge not to raise VAT, income tax or national insurance in next month’s Budget - fuelling expectations that the Budget will involve further major tax rises as she seeks to close a multi-billion pound gap in her plans. Sir Keir Starmer has previously said the commitment Labour made to voters before the 2024 general election “stands”, but failed to repeat that assurance in the Commons and his press secretary also avoided using the phrase. The PM also refused to rule out extending the freeze on the personal tax allowance threshold, which drags more earners into paying income tax. Meanwhile, on Sunday, Cabinet minister John Healey warned there will be “consequences” from recent weaker economic forecasts at this month’s Budget – and declined to repeat Labour’s promises on tax. He said the OBR now saw much worse “scarring” on the economy than previously thought and the chancellor would make “announcements to deal with those challenges”. Asked whether the government would stick to its manifesto pledge not to raise income tax, national insurance or VAT, Mr Healey declined to repeat the promise. He told Sky News’s Sunday Morning With Trevor Phillips programme: “That’s for the Budget and that’s for the chancellor to announce at the end of the month.” Pressed further on Labour’s tax commitment, he added: “No decisions have been taken about the Budget, even the Office of Budget Responsibility hasn’t produced its final figures. “But what we do know is that they now see the deep damage and scarring to be much more serious than previously thought, a combination of years of cuts, Covid and really slow economic growth over 14 years. “So there are consequences. Things do change, and we’ll have the announcements that are needed to deal with those challenges in the Budget.”