When is the Budget and what might be in it?

When is the Budget and what might be in it?

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Reuters

Chancellor Rachel Reeves has acknowledged that she is considering tax rises and spending cuts in the Budget, on 26 November. Before the 2024 general election, Labour promised not to increase income tax, National Insurance or VAT for working people.

What happens during the Budget and what time is it?

The chancellor's Budget statement outlines government plans for raising or cutting taxes. It also includes big decisions about spending on public services such as health, schools and police. The statement is made to MPs in the House of Commons. It usually starts at about 12:30, after Prime Minister's Questions, and lasts for about an hour. The Leader of the Opposition, Conservative MP Kemi Badenoch, will give an immediate response.

Why is the chancellor considering putting up taxes?

Reeves has confirmed that both tax rises and spending cuts are options. She needs more money in order to meet her self-imposed "non-negotiable" rules for government finances. The two main rules are: Not to borrow to fund day-to-day public spending by the end of this parliament

To get government debt falling as a share of national income by the end of this parliament The Institute for Fiscal Studies think tank says Reeves will "almost certainly" have to raise taxes to make up what it estimates will be a £22bn shortfall in the government's finances. It said this would let the government retain a £10bn buffer to meet the rules, but warned there was a "strong case" to increase the safety margin. Separately, the BBC understands the government could be facing a further £20bn hole in the public finances because of fears over the UK's productivity - a measure of how efficiently businesses operate.

What tax changes could be in the Budget?

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