UK Chancellor, Rachel Reeves, has announced that Wednesday 30 October will be the date of her first budget.
And, from the despatch box, she repeated the Labour Party’s promise that there will be no increases in National Insurance, the basic, higher, or additional rates of Income Tax, or VAT for the duration of this parliament.
Reeves has also announced spending cuts of £5.5 billion this year and over £8 billion next year, in an attempt to address a projected £22bn hole in the public finance.
Government departments have been asked to absorb £3 billion of these savings. Non-essential spending on consultancy and government communication are top of that list. Department’s will need to find 2% savings in their back-office costs.
The Investment Opportunity Fund set up as part of the levelling up agenda has also been scrapped.
Reeves has committed to selling the government’s shareholding in NatWest by 2025.26, but not through a retail sale. This was not deemed value for money for taxpayers.
She also plans to means-test the Winter Fuel Payments for pensioners, which will save around £1.4 billion this year.
