Tax Talk: What's Next for UK's Budget?

Focus on Fairness and Opportunity

The UK's finance chief, Rachel Reeves, is set to deliver a major speech. She wants to focus on fairness and opportunity in the upcoming budget. This is her second budget since taking office. It's due on November 26.

Tax Talk and Pre-Election Promises

There's a lot of talk about where she might raise taxes to meet her financial goals. Reeves is expected to break a pre-election promise—she promised not to raise income tax. But experts say she might have to.

The Resolution Foundation thinks she needs to find an extra 26 billion pounds. That's a lot of money!

Budget Watchdog and Growth Forecasts

The UK's budget watchdog might lower its growth forecasts. This could mean Reeves needs to tax more or spend less. She wants to balance the budget by 2029/30. That's a tough task.

Higher Borrowing Costs and Benefit Cuts

The Resolution Foundation also says higher borrowing costs are a problem. The government failed to cut disability benefits earlier this year. This makes finding extra money even harder. They suggest taxing cars, capital gains, and non-labour income more.

Fairness and Opportunity

Reeves says her budget will be guided by fairness and opportunity. She wants to:

• Protect the NHS
• Reduce national debt
• Improve living costs

But can she do all this without raising taxes too much? That's the big question.

Prime Minister's Spokesperson on Budget Choices

A spokesperson for the Prime Minister says Reeves will talk about choices. It's either investment and hope or cuts and division. That's a stark choice. What will Reeves choose?