It’s Budget week in Westminster. Over three months after Keir Starmer triumphed in the general election, his Chancellor Rachel Reeves will this week set out the direction of the Labour government for the coming years in her first ever Budget. It’s fair to say that expectations are relatively low – with the Prime Minister himself warning of painful decisions ahead. Meanwhile, Treasury sources are keen to play down talk of any Budget rabbits, suggesting a mix of the measures currently being discussed in the media.
Starmer will be trying to offer a narrative as to why tough decisions need to be taken
The one confirmed Budget measure is a change to the fiscal rules to allow Reeves to borrow more for infrastructure spending. When it comes to what is expected but unconfirmed, a rise to employer national insurance, an increase to capital gains tax and the freezing of tax allowances until 2030 are all viewed as likely.
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