Reeves signals tougher fiscal choices ahead of November Budget

Chancellor Rachel Reeves signalled on the opening day of Labour’s conference in Liverpool that tougher fiscal choices lie ahead, warning that Britain faces new economic tests and refusing to rule out tax measures in a Budget due at the end of November. Speaking to party members, Ms Reeves said global pressures and long‑term damage to the economy mean “the choices to come [will be] made all the harder,” and she made clear the government is preparing to address a substantial shortfall in the public finances.

Reeves reiterated that the government will not raise headline rates of income tax, national insurance or VAT, but said she could not categorically rule out other measures, including extending the freeze on tax thresholds that would push more people into higher bands. Such a thresholds freeze, sometimes called a stealth tax, is on the table alongside options discussed privately, including changes to property taxes and applying VAT in new areas. Officials and some analysts say forthcoming Office for Budget Responsibility forecasts could widen a fiscal gap by tens of billions of pounds, a development that would shape the chancellor’s choices.

The chancellor used parts of the...