Overview: Reeves frames November budget as a growth-focused plan
Chancellor Rachel Reeves has signaled that higher taxes on the UK’s wealthiest could feature in the upcoming November budget, framing the move as part of a broader strategy to repair public finances without returning to austerity. Speaking in Washington at the International Monetary Fund (IMF) meetings, Reeves told the Guardian that the government intends to shore up growth and revenue even as it expects revised forecasts from the Office for Budget Responsibility (OBR).
Reeves insisted there would be no return to austerity and stressed that the budget would be aimed at boosting economic growth while delivering responsible public finances. She described the economic mood as difficult but said the country could navigate the challenges with a steady course of investment and reform.
What Reeves said about tax rises and economic strategy
Asked whether measures targeting the wealthier segments of society would be included, Reeves replied that “+that will be part of the story” for the 26 November package. While she stopped short of detailing specific measures, she pointed to past policies that generated debate—such as anti-avoidance steps on non-doms, private equity tax changes, and VAT on private school fees—and argued that critics who dismissed their revenue potential underestimated the government’s plans.
Reeves emphasized that the OBR would publish updated numbers, and she argued that scaremongering about tax increases had not deterred the government in the past. She defended her approach as pragmatic and honest about the global economic environment, saying the public would recognise the necessity of prudent policy amid volatility.
Possible tax options under discussion
Although Reeves did not confirm specifics, there is ongoing speculation about several potential avenues to bolster revenue and growth. Observers have highlighted options including raising capital gains tax, extending national insurance to rental income or partners in professional firms, and creating higher council tax bands. There is also chatter about reviving plans to overhaul tax-free ISAs to channel more savings into the UK stock market.
Campaigners have urged Reeves to consider a landmark wealth tax, but the chancellor has publicly ruled out a direct wealth tax option. The mix of potential measures reflects a broader strategy to both fund long-term investment and manage public debt without abrupt spending cuts.
Growth, productivity and the fiscal buffer
Reeves underscored that the budget would aim to boost growth and increase the government’s fiscal headroom to cushion volatility in bond markets and borrowing costs. The government is hoping to align investor confidence with its investment-led plan—building routes to lower borrowing costs and restoring credibility after earlier market turmoil linked to past policy missteps.
She contrasted Labour’s approach with Conservative and Reform party policies, arguing that continuing with investment in health, housing, energy infrastructure, and public services would yield long-term gains for productivity. Reeves argued that improving productivity remains the United Kingdom’s top priority, a stance reinforced by the OBR’s recent examination of productivity trends.
Context: the global outlook and domestic pressures
The chancellor connected the need for fiscal measures to a volatile global environment, noting that 2025 has been marked by geopolitical tensions and economic shocks that reverberate domestically. She said the public understood the need for careful choices, reflecting a willingness to accept some difficult measures in exchange for stronger economic foundations.
Her comments also touched on past missteps, including the 2022 mini-budget and the resulting spike in gilt yields. Reeves argued that the current plan is designed to restore credibility, reduce the cost of government borrowing, and ensure that taxpayers see tangible benefits from public investment—such as shorter waiting lists, improved housing infrastructure, and energy projects that reduce bills sustainably.
Looking ahead, Reeves aims to secure bond market confidence and bring UK yields back in line with other major economies, ensuring that borrowing costs do not erode the country’s long-term growth prospects. The November budget will be pivotal in signaling whether the current direction can deliver on both revenue and growth ambitions.
