Democrat reporter
This autumn’s Budget, set for November 26, will come nearly a month later than last year’s Budget was held. It is set to be the latest Budget in the year since George Osborne’s autumn statement in 2014.
The Office for Budget Responsibility (OBR) will be given the required 10 weeks’ notice to provide an independent forecast, after which the full scale of the fiscal “black hole” will be confirmed to Ms Reeves.
But the late timing means households and businesses will have less time to plan around any new taxes before the start of the new fiscal year in April.
Analysis: Reeves set to stand firm against pressure
Rachel Reeves has announced that her second Budget will be on 26 November with speculation whirling around whether she will have to plug a £40bn black hole.
However, Treasury sources have warned: “The kite flying [on taxes] has to stop, it is not coming from us.”There has been talk of a new tax on banks, a mansion tax, a gambling levy and national insurance payments for landlords.
But it is understood that Ms Reeves will not budge from her position that the government should not break its manifesto commitment and raise income tax, VAT or national insurance for employees.
She is also expected to not revise her borrowing rules despite pressure from within her own party to borrow more.
We can also expect a series of announcements on productivity including investment in major projects ahead of the Budget as Ms Reeves tries to stimulate growth. Her top priority sounds like it is still economic growth despite Sir Keir removing that mission from Downing Street.
She will also be trying to keep down inflation and keeping a grip on the public finances.
Amid speculation Ms Reeves is being sidelined by the PM, a source insisted that the chancellor will take the decisions on the Budget not DS “this is a close political project, Keir and Rachel work very closely together.”