Everything we know about Rachel Reeves’ Budget – from mansions to milkshakes

cityam2025-11-24

Rachel Reeves faces intense pressure ahead of the Budget. In the run-up to the mother of all Autumn Budgets to be delivered by Chancellor Rachel Reeves this week, tax rumours have run wild, infecting ...

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In the run-up to the mother of all Autumn Budgets to be delivered by Chancellor Rachel Reeves this week, tax rumours have run wild, infecting ...</p>\n\n<a href=\"https://www.cityam.com/everything-we-know-about-rachel-reeves-budget-from-mansions-to-milkshakes/\">Source Link</a>\n\n</div>\n","source":"cityam_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Everything we know about Rachel Reeves’ Budget – from mansions to milkshakes</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEverything we know about Rachel Reeves’ Budget – from mansions to milkshakes\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-24 13:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityam.com/everything-we-know-about-rachel-reeves-budget-from-mansions-to-milkshakes/><strong>cityam</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Rachel Reeves faces intense pressure ahead of the Budget. In the run-up to the mother of all Autumn Budgets to be delivered by Chancellor Rachel Reeves this week, tax rumours have run wild, infecting ...</p>\n\n<a href=\"https://www.cityam.com/everything-we-know-about-rachel-reeves-budget-from-mansions-to-milkshakes/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0029865408.USD","symbol_name":"TEMPLETON LATIN AMERICA \"A\" INC","start_time":0,"source_url":"https://www.cityam.com/everything-we-know-about-rachel-reeves-budget-from-mansions-to-milkshakes/","article_id":"2585453446","we_media_id":null,"thumbnails":["https://www.cityam.com/wp-content/uploads/2025/11/rachel-reeves-tax-design-2-e1763915029573.jpg?w=824&h=463&crop=1"],"rights":{"source":"cityam_highlight","url":"https://www.cityam.com/everything-we-know-about-rachel-reeves-budget-from-mansions-to-milkshakes/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2585453446","pubTimestamp":1763962080,"columns":[],"sourceInfo":{"source_id":"cityam_highlight","name":"cityam"},"weMediaInfo":null,"summary":"Rachel Reeves faces intense pressure ahead of the Budget. In the run-up to the mother of all Autumn Budgets to be delivered by Chancellor Rachel Reeves this week, tax rumours have run wild, infecting the minds of businesses and working Brits while adding to the sense of peril that a botched fiscal event could bring.Investors are running scared. Voters fear looming betrayal. Gamblers are punting on the worst outcome. The UK economy has been slowed down by a “fiscal fandango”. Labour backbenchers are making nefarious plans to oust the Chancellor, or even the Prime Minister.Starmer, Reeves and Downing Street strategists are bracing themselves for the wrath of backbenchers, newspaper front pages, lobbyists, academics and celebrity campaigners.It won’t be possible to please them all.Only the bond markets appear to have their backs, yet one wrong move could see traders turn against the government.","collect":0,"end_time":0,"defaultTopTitle":"cityam.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0029865408.USD":"TEMPLETON LATIN AMERICA \"A\" INC","IFS":"Intercorp Financial Services Inc.","BK4207":"综合性银行","LU0300738514.USD":"TEMPLETON EMERG MKTS SMALLER CO \"A\"(USD) ACC","EMI":"Encore Medical Inc","LU0320763518.SGD":"FTIF - Templeton Latin America A Acc SGD","LU0128526570.USD":"TEMPLETON LATIN AMERICA \"A\" ACC","LU0300738605.USD":"TEMPLETON EMERG MKTS SMALLER CO \"A\" INC"},"translate_title":"我们所知道的关于蕾切尔·里夫斯预算的一切——从豪宅到奶昔","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"IFS":1,"EMI":1},"content_text":"Rachel Reeves faces intense pressure ahead of the Budget. In the run-up to the mother of all Autumn Budgets to be delivered by Chancellor Rachel Reeves this week, tax rumours have run wild, infecting the minds of businesses and working Brits while adding to the sense of peril that a botched fiscal event could bring.Investors are running scared. Voters fear looming betrayal. Gamblers are punting on the worst outcome. The UK economy has been slowed down by a “fiscal fandango”. Labour backbenchers are making nefarious plans to oust the Chancellor, or even the Prime Minister. Starmer, Reeves and Downing Street strategists are bracing themselves for the wrath of backbenchers, newspaper front pages, lobbyists, academics and celebrity campaigners. It won’t be possible to please them all.Only the bond markets appear to have their backs, yet one wrong move could see traders turn against the government. \n\nBy now, the Budget will have been signed off, pending a few adjustments in annexes and footnotes. Economists at the Office for Budget Responsibility (OBR), the fiscal watchdog whose forecasts conclude whether Reeves has met her fiscal rules to balance day-to-day spending with tax receipts by 2029/2030, are bracing for a bi-annual dose of intense scrutiny.\n\n\n\n\n\n\nNews Updates\nStay ahead with our three daily briefings delivering all the key market moves, top business and political stories, and incisive analysis straight to your inbox.\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nShould pensions minister Torsten Bell and economic adviser Minouche Shafik’s vision be adopted by the Treasury, the upcoming Budget could be one of the most totemic moments of Labour’s time in office. Business chiefs are nervousBusiness groups, meanwhile, will hope some of their demands for changes to training levies, benefits reform, deregulation and technology are taken on by the government.Reform UK and the Conservative Party have offered their alternative proposals. Nigel Farage has called on Reeves to cut support to immigrants and the Tories have called on deep cuts to public expenditure, starting with welfare. \n\nThe best that analysts have been able to do, meanwhile, is come up with estimates for the fiscal hole facing Reeves and what decisions she will make on 26 November. Having reported on the twists and turns for weeks, and drawing on analysis from economic consultancies, think tanks and analysts at banking giants, City AM has devised a probable scorecard for the upcoming Budget. Reeves’ headroom destroyersProductivity and growth downgrades Reduction: £10bn – £20bn The Treasury relies on the OBR’s forecasts to set its tax and spend targets, and critics have long warned that the body’s assessment of economic productivity – a key measure – is over-optimistic. Reports suggest the OBR is going to downgrade its productivity assessment – based on output per hour – by around 0.3 percentage points. \n\nReeves may hope that some Budget policies around innovation, planning reforms and energy costs could help to boost growth forecasts. Some of those policies may add to costs in OBR forecasts but could have the benefit of lessening the hit of damaging productivity downgrades. Other policies announced since the Spring Statement could persuade the OBR to keep growth forecasts higher. This includes trade deals struck with the US and India, pension “superfund” reforms, deregulation in the City and tech deals. But measures in the Employment Rights Bill combined with sluggish housebuilding and poor growth data may have adverse effects. A 0.1 percentage point decrease would anyway be brutal. The Institute for Fiscal Studies (IFS) said each percentage-point downgrade will incur around £7bn extra public sector net borrowing, bulldozing Reeves’ £9.9bn fiscal headroom. \n\nWelfare u-turnsReduction: £6bn U-turns over welfare spending decisions will come with a £6bn price tag at this month’s Budget, according to Oxford Economics. This cost includes the Government’s commitment to give winter fuel payments to nine million pensioners after campaigners and Labour members made their exasperation with its initial scrapping clear to the government. This £6bn also accounts for the cost of the climbdown over planned welfare cuts after a backbench rebellion. Treasury Select Committee chair and Labour MP Meg Hillier was a key opponent to welfare spending cuts earlier this year.Debt interest costs Reduction: £4bn Rising interests on government bonds will add £4bn to projected government spending, according to Oxford Economics. The government borrows money by selling bonds to investors – known as ‘gilts’ due to the pieces of paper literally having a gilded edge, one upon a time.The cost of gilt yields – the sum exchanged for these bonds, plus any interest payments – increases as these bonds become less popular, which happens when investors lose confidence in the UK economy.The OBR said in March that borrowing costs to the government’s lenders in the bond markets would cost more than £110bn this year, more than twice the defence budget and near the total spent on education. Gilt yields recently hit their highest level this century, but have begun to fall in the last month, leaving Reeves with hope that the OBR will deliver a lower-than expected debt interest assessment.However, the OBR could also decide that Budget measures lead to greater market volatility, leading them to upgrade borrowing cost projections. Building more headroomReduction: £5-10bnAt last year’s Budget – which Reeves marketed as a one-off tax-raising measure to restore stability – the Chancellor left a £9.9bn buffer to cushion the public finances against volatile markets. A decision to maintain it at the same level at the Spring Statement prompted analysts at American bank Jefferies and the economist Paul Johnson, formerly of the IFS, to predict incoming tax increases.Analysts are urging the Chancellor to carve out more breathing space at this month’s Budget, and Treasury figures are said to be pushing for more headroom from within No. 11.Reeves’ £9.9bn headroom was the third-smallest of any chancellor since 2010, and the Institute for Government said this “razor thin” buffer means the Chancellor is forced to adjust to every new forecast from the OBR.Some are calling for Reeves to create a buffer of at least £20bn, but this would require heavier tax rises.Reeves has herself said she would build a larger headroom to “absorb shocks” and try to avoid another repeat of tax rises next year. \nScrapping two-child benefit cap Reduction: £3.5bnFollowing months of uncertainty, recent interventions by Reeves and Prime Minister Keir Starmer mean it appears likely the two-child benefit cap will be scrapped at the Budget.Allowing benefits to be claimed for an unlimited number of children would cost between £3.4bn and £3.5bn, according to the IFS.Reeves could also look to introduce a tapered system based on a report by the Resolution Foundation. The left-leaning think tank has set out a slate of half-measure options for Reeves, such as exempting families with a disabled child (which would cost only £1.2bn), introducing a lower benefit payment for the third child and beyond (£2.3bn) and scrapping the cap just for families with at least one working parent (£2.6bn).Cutting VAT from energy bills Reduction: £2.5bnThe government is expected to strip VAT from household electricity and gas bills, which will cost £2.5bn according to Pantheon Macroeconomics.Household energy bills are currently subject to 5 per cent VAT, with much of the tax being paid by consumers rather than providers. Energy Secretary Ed Miliband hinted at the measure last month, but refused to confirm it.The policy could strip around 0.15 percentage points off headline inflation, Barclays estimates have suggested.\nTax breaks for innovators  Reduction: £1bnReeves is reportedly considering tax breaks for innovators which would cost just under £1bn, but could deliver between £6bn and £10bn in productivity returns.In 2023, then-chancellor Jeremy Hunt changed expensing rules for investment to allow businesses to claim back £250,000 on corporation tax for every million spent on new equipment. An expansion of this relief to cover purchases of intellectual property, such as patents and licenses, is said to be under consideration. The government could also expand the enterprise management incentive (EMI) scheme that offers tax-free share options to employees at early-stage startups. NHS England redundanciesReduction: £1bnHealth Secretary Wes Streeting has called for an extra £1bn in Treasury cash to cover mass redundancies at the quango NHS England. This emergency allowance should be closer to £3bn to account for strike action and higher drug prices, according to the NHS Foundation.Rachel Reeves, however, has reportedly rejected the health secretary’s calls, so it is unlikely that this cost will factor in her Budget.Headroom destroyersReductionProductivity downgrade£10bn – £20bnWelfare spending £6bnExtra borrowing costs£4bnBuilding more headroom£5bnScrapping two-child benefit cap £3.5bnCutting VAT from energy bills £2.5bnTax breaks for innovators £1bnTotal needed in extra tax revenue or spending cuts£32bn – £42bnHeadroom buildersThreshold freeze ‘stealth tax’Addition: £10.4bnIncome tax and national insurance thresholds are frozen until 2028, in a so-called “stealth tax” which raises money for the Treasury as inflation drags workers into higher tax brackets. At her first Budget, Reeves vowed to unfreeze these thresholds by the end of this parliament, rightly calling the move a tax on workers.However, following last week’s U-turn over a previously-expected 2p hike to the rates of income tax, a further freeze to thresholds has become more likely.Reeves would extend the freeze on both taxes until 2030, which would raise an extra £10.4bn according to IFS.The total amount in gains scored by the OBR will largely hinge on fiscal forecasts, particularly around wage growth and inflation. Michael Saunders, senior advisor at Oxford Economics, said: “We regard a freeze in income tax allowances and NICs thresholds a near certainty.”Mansion taxes Addition: £6bn – £7bnThe Treasury is considering introducing a ‘mansion tax’ to target those with the “broadest shoulders”.  Reeves has reportedly told MPs that the mansion tax is a certainty in next week’s Budget. Various options to trigger a mansion tax have been on the table, including doubling the council tax rate charged to the top two bands of property or ending the capital gains tax exemption on properties above a certain value.But Reeves has reportedly committed to a council tax surcharge on properties above a certain value, and is urging MPs to bill this measure as a tax on those with the “broadest shoulders”.Houses over a certain value, such as £1.5m, would face an additional 1 per cent tax on the value above that level, meaning a home worth £2m would have to pay an extra £5,000 a year on top of its existing council tax.Reeves will announce a revaluation of 2.4 million of the most valuable properties across bands F, G and H over the next few years – representing one in 10 English homes, according to The Telegraph.It is unclear how much property taxation reforms could raise given the uncertainty around how Reeves may fiddle with thresholds and surcharges. The IFS has estimated that a new surcharge on the two highest bands could raise £4.4bn. Meanwhile, Capital Economics analysis has suggested that introducing capital gains taxes on primary residences valued above £1.5m would raise an extra £2bn. Landlord taxAddition: £2.2bnOne of the key proposals in the Resolution Foundation’s expansive report on the UK economy when pensions minister Torsten Bell was in charge of the think tank was to levy national insurance on landlords. The suggestions of an extra tax on earnings made by property owners has already faced widespread criticism. Reeves rejected the proposal at last year’s Budget but it could feature this year to fill a fiscal hole and target the wealthiest people in the UK.  Treasury minister Torsten Bell has led calls for landlords to be taxed. Jordan Pettitt/PA WireReducing the tax gap Addition: £5bnThe total tax gap, the difference between the amount that should be paid to HMRC based on official spending figures versus what was actually paid, in the last financial year was nearly £47bn.Tax officials have said that around three fifths of the gap comes due to unpaid taxes across small businesses. In the Spending Review, Reeves announced upgrades in the budget for HMRC in order to improve compliance across the department. This will include adding some 8,000 new staff to close the tax gap by some £7.5bn. Acting as a watchdog on government claims, the OBR could take a more moderate view of how much more tax intake could be made from boosts to HMRC operations. Economists have suggested that there could be a £5bn improvement to tax revenue forecasts as a result of the change made since the OBR last published a fiscal forecast.Road tax on electric carsAddition: £2bnThe government is set to hit drivers of electric vehicles with a new pay-per-mile tax in the Budget. The levy will charge drivers 3p per mile on top of other road taxes, resulting in an extra cost of £250 per year.The government is attempting to present the tax as a fairness measure, as drivers of petrol cars pay an average of £600 per year through fuel duty.A government spokesperson appeared to confirm the tax, telling The Guardian: “Fuel duty covers petrol and diesel, but there’s no equivalent for electric vehicles. We want a fairer system for all drivers.”Capital Economics has measured the total gains for the Treasury to come in at just short of £2bn, though it could be higher depending on the per-mile charge imposed on vehicles. Clampdown on salary sacrifice Addition: £2bnReeves is reportedly eyeing up a clampdown on salary sacrifice schemes which allow workers to divert earnings into their pension pots.In a move which could raise up to £2bn per year, the Chancellor will reportedly cap national insurance exemptions for diverted income at £2,000 annually.This could cost six-figure earners up to £50,000, and has been described by critics as a stealth tax on pensions.Spending cuts in the last year of forecast periodAddition: £2.8bnIn times of despair, Chancellors have tended to look at finding savings in future years to avoid more imminent political controversies on public expenditure. Rachel Reeves has already delivered her Spending Review, freezing in departmental budgets for years up until 2029, the year the next General Election is due. While she could renege on promises made to her colleagues in the Cabinet, she could also turn to finding savings in the last year of the OBR forecast, which is also the year that is crucial for her fiscal rules. In the financial year 2029-2030, day-to-day spending across the government is forecast to increase by 1 per cent in real terms. Reeves could opt to halve the increase – meaning departmental spending increases by 0.5 per cent instead – in order to deliver quick savings and help plug her fiscal hole.  The IFS said this cut could deliver £2.8bn in extra saving while no real terms increase to departmental budgets would save the Chancellor up to £5.5bn. Gilt traders have told City AM they would not see this cut as a credible fiscal policy to control spending. \nMotability scheme tightenedAddition: £1bnReeves is reportedly gearing up a £1bn savings package through cuts to the Motability scheme offered to disabled people.The savings could be made through ending VAT and insurance premium tax reliefs offered under the scheme.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.0","shortVersion":"4.36.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2585453446","isCrawlerRequest":true}