Judgement day looms for Rachel Reeves and Sir Keir Starmer as the chancellor will unveil her long-awaited Budget on Wednesday, after months of speculation about what her statement could mean for voters’ wallets.
Ms Reeves is expected to unveil a ‘smorgasbord’ of tax rises as she looks to plug the gap in the country’s finances worth billions, after an apparent government U-turn on the idea of bringing in an increase to income tax.
It comes after ministers announced two tax changes on Tuesday. Health secretary Wes Streeting confirmed the expansion of the soft drinks industry levy - otherwise known as the sugar tax - to cover packaged milkshakes and lattes, while communities secretary Steve Reed announced that mayors in England will be given the power to impose a tourist tax, with a “modest” charge on visitors staying in hotels, bed and breakfasts, guesthouses and holiday lets.
Ministers also confirmed that minimum wage rates will increase next year, up to £12.71 for adults aged 21 and over, and to £10.85 for 18 - 20 year olds.
Ahead of the statement in the House of Commons, Ms Reeves said she would “take the fair and necessary choices to deliver on our promise of change”.
Key Points
- Analysis: Rachel Reeves wants to achieve these five things with her Budget - it won’t be easy
- When is the Budget?
- Rachel Reeves announces the Budget on Wednesday. Here’s what to expect
- What Rachel Reeves could do to pension tax at the Budget
Recap: Milkshakes and lattes to be included in sugar tax
06:40 , Harriette BoucherThe government has announced that milkshakes and packaged lattes will be hit by the sugar tax as Wes Streeting pledges not to look away “as children get unhealthier”.
The health secretary told the House of Commons that ministers are removing the exemption for milk-based drinks.
The threshold for the tax will also be lowered to 4.5g of sugar per 100ml, from the existing 5g per 100ml.
The sugar tax was introduced by the Conservative government in 2018, and has so far applied to manufacturers of pre-packaged soft drinks such as those sold in cans and cartons in supermarkets.
Business backlash as Reeves confirms minimum wage pay rise hike for millions of workers
06:20 , Harriette BoucherBusiness leaders have sent a warning to Rachel Reeves over an inflation-busting hike to the minimum wage which they fear will drive unemployment and hit economic growth.
The chancellor has unveiled an 8.5 per cent rise in the hourly minimum wage for 18 to 20-year-olds - to £10.85 - as well as a 4.1 per cent rise for the living wage, for those aged 21 and over, to £12.71 per hour. Meanwhile, 16 and 17-year-olds, as well as those on apprenticeships, will see an increase of 6 per cent to £8 per hour.
The announcement, on the eve of Ms Reeves’ Budget, will mean a pay rise for millions of workers, with the chancellor promising that those on low incomes will be “properly rewarded” for their work.
The Independent’s political editor David Maddox reports:
Business backlash as Reeves confirms pay rise for millions of workers
Reeves to extend scheme to help low income savers
06:00 , Harriette BoucherThe Independent’s Whitehall editor Kate Devlin reports:
The chancellor is to extend a scheme that helps low-income savers get a £1,200 bonus from the government.
Ms Reeves will announce the Help to Save scheme, which was set to end in 2027, will be made permanent and opened up to parents and carers on Universal Credit from 2028 – helping up to an extra 1.5millon low earners.
It allows members to put away up to £2,400 over four years, a sum which is then topped up by a £1,200 government bonus.
A Treasury source said: “For too long governments have ignored the role of carers and parents in keeping the economy ticking. The chancellor wants to change that and help millions more working people build a savings habit."
Under the scheme, savers put up to £50 a month into an account. Bonuses are paid at the end of the second and fourth years.
Over 500,000 savers have already taken part, with millions of pounds paid out in bonuses.
When is the budget dropping?
05:40 , Harriette BoucherChancellor Rachel Reeves will deliver the Autumn Budget at approximately 12:30pm on Wednesday after Prime Minister’s Questions.
HM Treasury will then release the budget documents, which provide the technical details of the economic forecasts and proposed tax changes.
The leader of the opposition, Kemi Badenoch, will then respond, followed by the leader of the third largest party, Sir Ed Davey.
The Office for Budget Responsibility (OBR), the budget watchdog, will also publish revised forecasts for the economy and public finances.
Recap: Chancellor ‘planning stamp duty holiday on newly-listed company shares’
05:20 , Harriette BoucherChancellor Rachel Reeves is reportedly planning to announce a three-year stamp duty holiday on new UK stock market listings in Wednesday’s Budget as the Government looks to boost the flagging London market.
It is thought the plans will see investors exempted from paying the tax – currently at a rate of 0.5% – on shares in companies that are newly-listed in the UK for the first three years following its initial public offering (IPO).
The Government is said to be looking to help buoy the London market’s competitiveness amid fears it is losing out to overseas rivals, with a raft of firms having defected abroad in recent years.
Gambling firm and Paddy Power owner Flutter is among firms that have switched their main listing to New York, while a number have also been bought out by overseas rivals.
In pictures: Reeves looks over her speech on Tuesday she prepares for Budget Day
05:00 , Harriette Boucher
Rachel Reeves warned against ‘dire’ cuts to Motability in Budget by over 40 disability charities
04:00 , Harriette BoucherDozens of leading disability charities have urged Rachel Reeves not to cut Motability at Wednesday’s Budget as the chancellor reportedly considers axing up to £1bn in tax breaks for the scheme.
Leasing around 300,000 vehicles a year to eligible disabled people, Motability has been the topic of intense debate in recent months as some politicians disagree about whether it is provides good value for the taxpayer.
The reported proposals would see cars leased through the scheme no longer exempt from VAT and insurance premium tax, meaning more claimants would need to make an advance payment for their cars.
Reeves warned against ‘dire’ cuts to Motability by over 40 disability charities
Cash Isa limit cut may not encourage people to invest, finance expert says
03:00 , Harriette BoucherA potential cut in the cash Isa limit in Wednesday’s Budget would not necessarily persuade people to move their money into investments, a finance expert has said.
The Financial Times has reported that the annual cash Isa limit could be reduced to £12,000.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “We need an investment culture in the UK, and some of the money that has been saved in cash Isas would work harder for people if it was invested instead, but there’s no evidence that cutting the cash Isa allowance would encourage them to make the change.
“There will be people for whom cash Isas are the most sensible home for their money, especially if they’re saving for the short-term, have significant sums of cash and are a higher earner.”
Analysis: Rachel Reeves wants to achieve these five things with her Budget - it won’t be easy
02:00 , Harriette BoucherRachel Reeves became chancellor wanting nothing more than economic growth, but her priorities have now dramatically changed, as political editor David Maddox explains:
Rachel Reeves wants to achieve these five things with her Budget
Business backlash as Reeves confirms minimum wage pay rise hike for millions of workers
01:00 , Harriette BoucherBusiness leaders have sent a warning to Rachel Reeves over an inflation-busting hike to the minimum wage which they fear will drive unemployment and hit economic growth.
The chancellor has unveiled an 8.5 per cent rise in the hourly minimum wage for 18 to 20-year-olds - to £10.85 - as well as a 4.1 per cent rise for the living wage, for those aged 21 and over, to £12.71 per hour. Meanwhile, 16 and 17-year-olds, as well as those on apprenticeships, will see an increase of 6 per cent to £8 per hour.
The announcement, on the eve of Ms Reeves’ Budget, will mean a pay rise for millions of workers, with the chancellor promising that those on low incomes will be “properly rewarded” for their work.
The Independent’s political editor David Maddox reports:
Business backlash as Reeves confirms pay rise for millions of workers
Watch: Rachel Reeves announces national minimum wage increase in video address
00:00 , Harriette BoucherWhat is the sugar tax
Tuesday 25 November 2025 23:30 , Harriette BoucherThe sugar tax, introduced by the Conservative government in 2018, applies to manufacturers of pre-packaged soft drinks such as those sold in cans and cartons in supermarkets.
The tax, also known as the soft drinks industry levy (SDIL), aimed to help tackle obesity, including among children.
The existing levy has prompted a 46 per cent average reduction in sugar in the affected soft drinks.
The tax will now also apply to products such as packaged milkshakes, coffees and sweetened yoghurt drinks, but not drinks made on site in cafes and restaurants.
What Rachel Reeves could do to pension tax at the Budget
Tuesday 25 November 2025 23:00 , Harriette BoucherWith Labour’s second autumn Budget taking place on Wednesday, speculation about further tax rises has grown rife.
Chancellor Rachel Reeves may need to find at least £22bn next month, pre-Budget research from the respected Institute for Fiscal Studies (IFS) found, as rising borrowing costs and weak growth forecasts drastically reduce her room for manoeuvre.
She has warned she will not be making “easy choices” at the fiscal event on 26 November, as No 10 looks appears less concrete on its commitment not to raise taxes on “working people”.
This means no increase to the headline rates of income tax, VAT or national insurance contributions.
The Independent’s Albert Toth reports:
EasyJet boss warns against Budget move to hike flight taxes
Tuesday 25 November 2025 22:01 , Harriette BoucherEasyJet boss Kenton Jarvis has warned the Chancellor against a Budget move to raise air passenger duty as he said it would knock demand from holidaymakers.
There has been speculation that Rachel Reeves will increase air passenger duty, which is a tax on flights leaving the UK, in the Budget on Wednesday.
Mr Jarvis said this duty on UK flights was already “one of the highest in Europe”.
He is hoping Ms Reeves will freeze air passenger duty, cautioning that any increase would “naturally dampen demand”.
Sterling up against the dollar ahead of Budget
Tuesday 25 November 2025 21:30 , Harriette BoucherThe Independent’s Business and Money Editor Karl Matchett reports:
The sterling is up against the dollar and the euro in morning trading today, an indication of market caution ahead of the Budget.
£1 rose to as much as $1.314, but has since settled back to be about 0.03 per cent up for the day. It's expected that higher volatility is on the cards this week as traders balance eventual outcomes of the Budget against economic implications.
"We are considering the potential for a break below $1.30 on the Budget should it fail to land cleanly. We expect heightened volatility around this event so watch out," said Saxo UK strategist Neil Wilson.
As for what it means for Rachel Reeves and co tomorrow, the best case scenario is a "holding ground" when it comes to the bond market, adds Richard Potts, an economist at Bondford.
“For currency traders, the Budget will serve as a real-time credibility test. A rally in sterling is unlikely given the expected fiscal tightening, but if the pound holds its ground, it will signal that investors see the Chancellor’s measures as credible and sufficient to stabilise the public finances without necessarily derailing growth,” he explained.
In pictures: Starmer and Reeves chat outside outside the cabinet room before a budget meeting on Tuesday
Tuesday 25 November 2025 21:00 , Harriette Boucher
What are salary sacrifice schemes?
Tuesday 25 November 2025 20:30 , Athena StavrouA tax raid on salary sacrifice schemes could be announced in Wednesday’s Budget, reports suggest, raising fears that some people’s retirements could be put at risk.
Salary sacrifice schemes allow people to “give up” a chunk of their salary for a different benefit from their employer.
Employers may offer salary sacrifice as part of their pension scheme as a tax efficient way to help workers boost their pots.
When someone pays into a pension using salary sacrifice, the employer will pay the whole amount into the employee’s pension, including the employer’s contribution.
Estate agents warn mansion tax could 'create more uncertainty'
Tuesday 25 November 2025 20:00 , Athena StavrouEstate agents have warned the speculated mansion tax could “create more uncertainty” in parts of the property market.
The mooted move will create more uncertainty at the highest end of the property market, due to its predicted escalatory nature, at a time when the market is already under pressure as a result of Budget speculation since the summer,” Dominic Agace, chief executive of estate agents Winkworth said.
“Guidance will need to be provided swiftly on the highest potential tax charge, so everyone can adjust accordingly.
“With non dom tax changes, VAT on school fees and mortgage rate increases, this will just add to more pressure on those living in these homes worth £2m upwards, particularly in London where owners may have leveraged up to buy them.”
Rachel Reeves announces the Budget on Wednesday. Here’s what to expect
Tuesday 25 November 2025 19:30 , Harriette BoucherRachel Reeves is poised to deliver her Budget this week, with intense speculation surrounding potential tax increases designed to stabilise the nation's finances.
The chancellor is anticipated to outline measures addressing a significant public funds deficit and establishing a more robust financial reserve, aiming to reduce future demands on taxpayers.
These proposals are expected to be announced at approximately 12:30pm on Wednesday, 26 November.
The Independent’s Albert Toth reports:
Rachel Reeves announces the Budget on Wednesday. Here’s what to expect
Streeting gives major pre-Budget speech on child poverty fuelling further leadership speculation
Tuesday 25 November 2025 19:13 , Harriette BoucherWes Streeting has made a major eve-of-Budget speech arguing that his party needs to do more to tackle child poverty amid speculation that he is planning to make a bid to become leader.
Sources close to the health secretary denied that the speech to Barnardo’s and the King's Fund was a leadership bid, but the issue of child poverty has become a touchstone for the Labour Party.
Speaking at a conference in London, Mr Streeting discussed his own childhood, where his family faced poverty in London’s East End.
While listing the achievements of the party in government on child poverty, including free school breakfasts for primary school children, he insisted more needs to be done.
Streeting gives major pre-Budget speech on child poverty amid leadership speculation
Watch: Rachel Reeves announces national minimum wage increase in video address
Tuesday 25 November 2025 19:00 , Harriette BoucherFarmers banned from bringing tractors to parliament on budget day
Tuesday 25 November 2025 18:37 , Harriette BoucherFarmers have been forbidden from bringing their tractors to protest outside parliament on Wednesday as Rachel Reeves unveils her budget.
The Metropolitan Police said that while protests would be allowed, people are prohibited from bringing vehicles, including tractors and agricultural vehicles.
The force said the decision had been taken because of "serious disruption" the vehicles may cause to the local area, including businesses, emergency services and the public.
In an event page set up for the protest by a group called Berkshire Farmers, organisers said that farmers were planning to drive to London to "demand fairness and a future for British farming", saying that the current inheritance tax system "threatens family farms and rural livelihoods".
An administrator of the Berkshire Farmer Facebook group said the Met Police’s announcement that it was imposing the conditions with "this short of a notice" was a "malicious approach to preventing our right to protest, leaving little time for appeal or for facilitating their requests".
Business backlash as Reeves confirms minimum wage pay rise hike for millions of workers
Tuesday 25 November 2025 18:08 , Harriette BoucherBusiness leaders have sent a warning to Rachel Reeves over an inflation-busting hike to the minimum wage which they fear will drive unemployment and hit economic growth.
The chancellor has unveiled an 8.5 per cent rise in the hourly minimum wage for 18 to 20-year-olds - to £10.85 - as well as a 4.1 per cent rise for the living wage, for those aged 21 and over, to £12.71 per hour. Meanwhile, 16 and 17-year-olds, as well as those on apprenticeships, will see an increase of 6 per cent to £8 per hour.
The announcement, on the eve of Ms Reeves’ Budget, will mean a pay rise for millions of workers, with the chancellor promising that those on low incomes will be “properly rewarded” for their work.
The Independent’s political editor David Maddox reports:
Business backlash as Reeves confirms pay rise for millions of workers
In pictures: Reeves looks over her speech as she prepares for Wednesday's Budget
Tuesday 25 November 2025 17:30 , Harriette Boucher
Reeves to extend scheme to help low income savers
Tuesday 25 November 2025 16:59 , Harriette BoucherThe Independent’s Whitehall editor Kate Devlin reports:
The chancellor is to extend a scheme that helps low-income savers get a £1,200 bonus from the government.
Ms Reeves will announce the Help to Save scheme, which was set to end in 2027, will be made permanent and opened up to parents and carers on Universal Credit from 2028 – helping up to an extra 1.5millon low earners.
It allows members to put away up to £2,400 over four years, a sum which is then topped up by a £1,200 government bonus.
A Treasury source said: “For too long governments have ignored the role of carers and parents in keeping the economy ticking. The chancellor wants to change that and help millions more working people build a savings habit."
Under the scheme, savers put up to £50 a month into an account. Bonuses are paid at the end of the second and fourth years.
Over 500,000 savers have already taken part, with millions of pounds paid out in bonuses.
Analysis: Rachel Reeves wants to achieve these five things with her Budget - it won’t be easy
Tuesday 25 November 2025 16:30 , Athena StavrouRachel Reeves became chancellor wanting nothing more than economic growth, but her priorities have now dramatically changed, as political editor David Maddox explains:
Rachel Reeves wants to achieve these five things with her Budget
Cash Isa limit cut may not encourage people to invest, finance expert says
Tuesday 25 November 2025 16:04 , Athena StavrouA potential cut in the cash Isa limit in Wednesday’s Budget would not necessarily persuade people to move their money into investments, a finance expert has said.
The Financial Times has reported that the annual cash Isa limit could be reduced to £12,000.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “We need an investment culture in the UK, and some of the money that has been saved in cash Isas would work harder for people if it was invested instead, but there’s no evidence that cutting the cash Isa allowance would encourage them to make the change.
“There will be people for whom cash Isas are the most sensible home for their money, especially if they’re saving for the short-term, have significant sums of cash and are a higher earner.”
Chancellor ‘planning stamp duty holiday on newly-listed company shares’
Tuesday 25 November 2025 15:39 , Athena StavrouChancellor Rachel Reeves is reportedly planning to announce a three-year stamp duty holiday on new UK stock market listings in Wednesday’s Budget as the Government looks to boost the flagging London market.
It is thought the plans will see investors exempted from paying the tax – currently at a rate of 0.5% – on shares in companies that are newly-listed in the UK for the first three years following its initial public offering (IPO).
The Government is said to be looking to help buoy the London market’s competitiveness amid fears it is losing out to overseas rivals, with a raft of firms having defected abroad in recent years.
Gambling firm and Paddy Power owner Flutter is among firms that have switched their main listing to New York, while a number have also been bought out by overseas rivals.
Tax expert reveals key reasons why Rachel Reeves’ mansion tax won’t work
Tuesday 25 November 2025 15:20 , Athena StavrouOne of Britain’s leading tax experts has raised serious questions over Rachel Reeves' planned mansion tax on high-value homes expected in her make-or-break Budget.
Dan Neidle, the founder of Tax Policy Associates, is in favour of property tax reform, but has questioned proposals to hit 100,000 of the most expensive properties with an average charge of £4,500, as they would be based on out-of-date valuations.
Ms Reeves is understood to be looking to revalue bands F, G and H to raise more cash to fill a black hole in her spending plans of at least £20bn.
Read the full story:
Tax expert reveals key reasons why Reeves’ mansion tax won’t work
Reeves 'relishes' challenge of her job, says minister
Tuesday 25 November 2025 15:00 , Athena StavrouMayors to be given power to introduce tourist tax
Tuesday 25 November 2025 14:42 , Athena StavrouA new tourist tax can be levied on overnight stays if local mayors decide to introduce the measure, the Government has announced.
Local leaders in England will be given the power to impose a “modest charge” on visitors, the Ministry of Housing, Communities and Local Government said.
Announcing the measures ahead of the Budget on Wednesday, Local Government Secretary Steve Reed said: “Tourists travel from near and far to visit England’s brilliant cities and regions.
“We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.”
A consultation on details of the measure will run until February 18.
Watch: Wes Streeting confirms milkshake tax
Tuesday 25 November 2025 14:36 , Harriette BoucherWhat Rachel Reeves could do to pension tax at the Budget
Tuesday 25 November 2025 14:31 , Harriette BoucherWith Labour’s second autumn Budget taking place on Wednesday, speculation about further tax rises has grown rife.
Chancellor Rachel Reeves may need to find at least £22bn next month, pre-Budget research from the respected Institute for Fiscal Studies (IFS) found, as rising borrowing costs and weak growth forecasts drastically reduce her room for manoeuvre.
She has warned she will not be making “easy choices” at the fiscal event on 26 November, as No 10 looks appears less concrete on its commitment not to raise taxes on “working people”.
This means no increase to the headline rates of income tax, VAT or national insurance contributions.
The Independent’s Albert Toth reports:
Latest YouGov approval ratings show public confidence boost for government ahead of budget
Tuesday 25 November 2025 14:19 , Harriette Boucher'Strong opposition' from dairy industry on sugar tax changes
Tuesday 25 November 2025 14:13 , Harriette BoucherProducers of milk-based drinks and representatives of the dairy industry raised concerns over the proposed changes to the sugar tax and what it could mean for their products.
A document released by the government has revealed “strong opposition” from the dairy industry, major producers, and trade bodies, with some manufacturers worried about how the changes could affect the taste of the product.
The report said: “There was concern that reducing added sugar would compromise taste, leading to consumer rejection.
“Respondents stated that reformulated products (where sugar reduction impacts mouthfeel, viscosity and texture) often fail taste tests or are rejected by retailers and consumers.”
