Chancellor Rachel Reeves will deliver her first full autumn budget on 26 November, the Treasury has announced, as speculation mounts over potential tax increases to address a public finance shortfall of up to £40bn.
The date gives Reeves ten weeks to prepare a high-stakes package of tax and spending measures at a time when borrowing costs, stubborn inflation and a weak growth outlook are weighing on the economy. The Treasury confirmed that the Office for Budget Responsibility (OBR) has been commissioned to produce updated forecasts for the economy and public finances.
Reeves and Prime Minister Sir Keir Starmer have repeatedly pledged not to raise taxes on “working people” by increasing income tax, national insurance or VAT. However, she is exploring options to raise more from wealthier taxpayers, including changes to capital gains tax, inheritance tax and property levies.
Some left-wing Labour MPs and campaigners have pressed her to introduce a wealth tax, but Treasury insiders suggest Reeves has privately ruled it out.
Business leaders have warned that significant tax rises in November would add to the challenges facing households and companies, potentially dampening growth.
The timing of the budget means Reeves will have the party’s autumn conference in Liverpool, beginning in late September, to shape the political narrative. Treasury officials also hope that updated International Monetary Fund forecasts, due at its annual meeting in mid-October, could provide more positive news for the chancellor.
However, external risks loom large. The government fears rising global inflationary pressures, Donald Trump’s escalating trade war, and turbulence in financial markets could all worsen Britain’s outlook ahead of budget day.
The 26 November announcement underlines the tightrope Reeves faces. Having already unveiled £40bn of tax rises in last year’s budget to stabilise the public finances, she now must convince markets and voters that Labour can balance fiscal responsibility with its commitment to driving growth.
For businesses and households alike, the November budget promises to be one of the most consequential in years — setting the tone for Labour’s economic credibility after a difficult first year in government.
