Reeves Warns of Tax Rises, Welfare Cuts

Chancellor Rachel Reeves used an unusual pre‑Budget speech to warn that sweeping tax rises and further welfare cuts are likely and said she would set out specifics in the 26 November Budget. She declined to reaffirm Labour’s manifesto pledge not to raise income tax, national insurance or VAT, arguing tougher choices are needed to control rising borrowing costs, curb debt, protect public services and tackle the cost of living. Reeves cited an expected OBR downgrade to productivity forecasts and global trade frictions as drivers of the difficult fiscal position. Treasury options being examined reportedly include significant council‑tax reform — including doubling bills for top bands G and H and a full revaluation of property bands — measures that could raise billions but hit homeowners across the country. Critics accused her of breaking pledges and of blaming the previous Conservative government; the package is intended to reduce borrowing costs and avoid a return to austerity but is politically risky and likely to be deeply unpopular if fiscal headwinds worsen.