Reeves Signals Likely Tax Rise Hitting Pensioners

Chancellor Rachel Reeves signalled that tax rises are likely in her November 26 Budget, refusing to recommit to Labour’s manifesto pledge not to raise income tax, National Insurance or VAT. In an early-morning Downing Street speech she said “each of us must do our bit,” blamed long-term economic failings, global shocks including tariffs and Brexit, and an anticipated OBR downgrade for forcing difficult choices, framing the move to reassure markets and prepare Labour voters. She said detailed measures to reduce NHS waiting lists, lower living costs and get debt under control will be set out at the Budget. Commentators have suggested options such as raising income tax while cutting National Insurance, a swap that could blunt the impact on workers but would leave pensioners worse off because they do not pay NI. The proposal has prompted criticism and poses a major communications challenge for Labour, with opponents warning of a broken promise.