Reeves to promise ‘fairness’ in Budget as income tax hike speculation mounts
Rachel Reeves will promise a Budget of “fairness and opportunity” amid mounting speculation that she is preparing to hike income tax to plug a hole in the public finances.
In a speech from Downing Street on Tuesday, the Chancellor is expected to say she will “make the choices necessary to deliver strong foundations for our economy” for “years to come”.
Ahead of her remarks, No 10 repeatedly refused to re-commit to Labour’s manifesto pledges – fuelling speculation that its promise to avoid hiking income tax looks set to be broken.
Ms Reeves is expected to lay out three key priorities of cutting national debt, easing the cost of living and protecting the NHS, adding: “It will be a Budget led by this Government’s values, of fairness and opportunity and focused squarely on the priorities of the British people.
“You will all have heard a lot of speculation about the choices I will make. I understand that – these are important choices that will shape our economy for years to come.
“But it is important that people understand the circumstances we are facing, the principles guiding my choices – and why I believe they will be the right choices for the country.”
The speech is a bid to roll the pitch for a difficult autumn statement on November 26, in which the Chancellor is widely expected to raise taxes to balance the books in the face of weak growth and higher borrowing costs.
Economists at the Institute for Fiscal Studies have already predicted that she would need to find £22 billion to restore the £10 billion of headroom she previously left herself against her self-imposed debt targets.
Tom Barnes4 November 2025 07:19
