The chancellor has confirmed that the date of the budget will be Wednesday 26 November.
The budget will seek to address an economy that’s “not working well enough for working people”, said Rachel Reeves.
In a video message posted yesterday – see below – Reeves said: “Britain’s economy isn’t broken. But I know it’s not working well enough for working people. Bills are high. Getting ahead feels tougher. You put more in, get less out. That has to change.”
The chancellor listed ‘tearing up planning rules to build 1.5 million new homes’ among the achievements achieved by the government so far, but accepted that it needs to go further to stimulate economic growth.
“Cost of living pressures are still real,” she continued. “And we must bring inflation and borrowing costs down by keeping a tight grip on day to day spending through our non-negotiable fiscal rules”.
Ruth Curtice, director of the Resolution Foundation thinktank, told the press that the 26 November statement would probably be “one of the toughest second budgets in living memory”.
She added: “With higher gilt yields currently adding over £3bn to debt interest costs, and over £6bn of policy U-turns announced since March, the chancellor is already on track to miss her fiscal rules. With a growth downgrade also likely, significant fiscal tightening will be needed.”
Reeves is understood to have been exploring several tax-raising measures in recent months, including potential new property levies, amid concern that the shortfall in the government finances could be up to £40bn.
Rachel Reeves faces key choices on property tax before autumn budget
