Chancellor of the Exchequer Rachel Reeves will present her second Autumn Budget to the House of Commons today at 12:30pm, amid expected protests outside Westminster.
Key Measures in the Budget
The fiscal event is anticipated to include significant modifications to benefits, income tax thresholds, and property taxes. Other areas facing potential changes include the child benefit cap, ISAs, and the sugar levy on drinks.
Further announcements are expected regarding the minimum wage, rail fares, prescription charges, and costs associated with electric vehicle ownership. The Chancellor is reportedly preparing a series of smaller measures aimed at strengthening the UK's public finances, with a potential tourism levy among them.
Chancellor's Address and Challenges
In a filmed statement ahead of the Budget delivery, Chancellor Reeves acknowledged the government has begun seeing results over the past year. She highlighted that wages are rising faster than inflation, hospital waiting lists are decreasing, and the economy is growing more robustly than many predicted.
However, she directly addressed public frustration, stating: "I know that the cost of living is still bearing down on family finances, I know that people feel frustrated at the pace of change or angry at the unfairness in our economy."
Reeves attributed current challenges to the lasting damage from austerity, what she termed a "chaotic Brexit", and the pandemic, which she said proved worse than anticipated. Despite this, she committed to facing these issues head-on, asserting: "I'm not going to duck those challenges, and nor will I accept that our past must define our future. It doesn't have to."
Economic Strategy and Political Response
The Chancellor has described this Budget as one for "the British people", pledging to work with them to build a fairer, stronger, and more secure Britain. She has stressed that today's plans will include specific measures designed to ease the ongoing cost-of-living crisis.
This focus comes as the government seeks to maintain support from Labour backbenchers, particularly with predicted tax increases on the horizon. Reeves has also committed to reducing the cost of government debt and is expected to outline adjustments to borrowing rules to maintain fiscal credibility.
"Today I will take the fair and necessary choices to deliver on our promise of change," she stated ahead of her Commons address. "I will not return Britain back to austerity, nor will I lose control of public spending with reckless borrowing. And I will push ahead with the biggest drive for growth in a generation."
Following the Chancellor's statement, the Leader of the Opposition will deliver the Conservative Party's formal response, setting out their position on the government's fiscal plans.
