Chancellor Rachel Reeves has set November 26 as the date for this year’s Budget, according to sources at HuffPost UK. This eagerly-anticipated statement will be the second Budget delivered by Reeves since she took on the role of Chancellor last October.
The announcement was confirmed by Downing Street on Tuesday, with the Prime Minister’s spokesperson stating that the Office for Budget Responsibility (OBR) needs at least 10 weeks to assess the government’s tax and spending plans. This is the usual process and the Treasury will provide further details in due course.
Sources at HuffPost UK have revealed that the working assumption within No.10 is that the Budget will take place on November 26. However, a Treasury source has declined to comment on the speculation, stating that the official announcement will be made in the usual manner.
Reeves is expected to announce a number of tax increases as she seeks to address the significant deficit in the nation’s finances. Some economic experts have estimated this deficit to be as high as £50 billion. In her first Budget as Chancellor, Reeves increased taxes by £40 billion, mainly through a hike in National Insurance payments for employers. This was deemed a necessary move to address the £22 billion deficit left by the previous Tory government.
However, since then, economic growth has remained sluggish and the government’s debt servicing costs have risen significantly. As a result, Reeves is faced with the challenge of finding new ways to generate much-needed funds for the government. One option being considered is a new tax on landlords’ profits.
In addition to addressing the deficit, Reeves is also expected to announce measures aimed at boosting the UK’s productivity and stimulating economic growth. This is a crucial aspect of the Budget, as the government seeks to navigate the challenges posed by the ongoing pandemic and Brexit.
Despite the pressure to address the deficit, Downing Street has reiterated its pre-election pledge not to increase VAT, income tax, or National Insurance for employees. This commitment has been reaffirmed by insiders, who also revealed that the government is considering other avenues for generating revenue.
The political significance of the Budget has been highlighted by the recent shake-up announced by Labour leader Keir Starmer. Reeves’ deputy, Darren Jones, has been appointed as the new Chief Secretary to the Prime Minister, a newly created ministerial post. This move is seen as an attempt by Starmer to take greater control of economic policy.
In addition, crossbench peer Baroness Shafik has been appointed as Starmer’s Chief Economic Adviser. This further demonstrates the importance of the Budget and the government’s commitment to addressing the economic challenges facing the country.
Reeves’ Budget will be closely watched by the public and the business community alike. It is a crucial opportunity for the government to demonstrate its commitment to addressing the deficit and stimulating economic growth. The Chancellor has a tough task ahead, but her previous experience and expertise make her well-equipped to handle the challenges at hand.
In conclusion, Chancellor Rachel Reeves has set November 26 as the date for this year’s Budget. This will be a crucial statement, as the government seeks to address the deficit and stimulate economic growth. With the support of her team and the guidance of the Prime Minister, Reeves is well-positioned to deliver a Budget that will benefit the country and its citizens.
