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Starmer and Reeves hint at tax rises to come ahead of unusual pre-budget speech today

Chancellor Rachel Reeves plans tax rises to address a £30 billion to £50 billion fiscal shortfall, focusing on fairness, NHS waiting lists, cost of living, and national debt reduction.

  • Chancellor Rachel Reeves will use a Downing Street address on Tuesday to set out pre-Budget priorities including cutting NHS waiting lists, the national debt and the cost of living ahead of the November 26 Autumn Budget.
  • The IFS warns Reeves faces a £22 billion gap to restore the £10 billion of fiscal headroom, with OBR forecasts potentially adding £20 billion to costs, last week.
  • Officials say possible measures include a mansion tax for homes worth more than 2 million, higher council tax bands, and a 2p employee NI cut to raise £6 billion overall.
  • Labour's manifesto explicitly ruled out VAT, NI or income tax rises, but No 10 Downing Street spokesperson refused to re-commit, fuelling speculation and calls for Rachel Reeves to be sacked if she breaks promises.
  • The Treasury is scrambling to plug a black hole of up to £50bn in the public finances, increasing pressure for large measures as millions of middle-income earners face higher levies to meet fiscal rules and public debt targets by 2029-30.
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New Statesman broke the news in London, United Kingdom on Monday, November 3, 2025.
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