Chancellor of the Exchequer Rachel Reeves is scheduled to deliver a pre-Budget speech from Downing Street, promising to make the "necessary choices" for the economy in the upcoming 26 November Budget, acknowledging that "the world has thrown even more challenges our way" over the past year. Reeves, who is widely anticipated to announce tax increases in the forthcoming fiscal statement, affirmed that her dedication to established fiscal rules remains "iron clad." Her speech signals that the Budget will focus on achieving both growth and fairness, despite the Labour Party's manifesto pledge not to raise Income Tax, VAT, or National Insurance, reports The WP Times with reference to ВВС.
The Chancellor's commitment comes at a critical time as the government's official forecasting body, the Office for Budget Responsibility (OBR), is expected to publish a downgrade to its productivity forecasts for the United Kingdom. Reeves' address emphasizes that while her party made specific commitments during the general election campaign regarding the key UK taxes (Income Tax, VAT, and National Insurance), the current global economic climate necessitates tough decisions. The focus on making "necessary choices" strongly suggests that the government will look to other areas for revenue generation, likely including adjustments to corporate taxes, capital gains taxes, or the introduction of new environmental levies, to meet her stated goal of fiscal responsibility. Her position on maintaining "iron clad" fiscal rules underscores the government's priority of stability and debt management, even as economic growth projections face downward revision.
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