Is Labour’s first Budget coming unstuck?

During the general election campaign, Labour played a cautious game on tax: the party was careful not to share its bigger plans for getting more revenue into the Treasury until after the election was over. A few major tax hikes were ruled out – income tax, National Insurance and VAT – but it was quickly realised this meant all other taxes were fair game. Only a handful of relatively small tax hikes were announced in the lead-up to polling day, including putting VAT on private school fees and ending non-dom status. 

The softly-softly strategy seemed to work, at least for getting through the election. It left the Chancellor Rachel Reeves with huge room for flexibility in the Treasury to do what she wanted in her first Budget on 30 October, thanks to the huge majority Labour now commands and the absence of almost any tax promise in the manifesto.