Overview
- In a BBC Radio 5 Live interview, Rachel Reeves said sticking to the manifesto would require deep capital spending cuts, indicating she is prepared to change course.
- The Office for Budget Responsibility is delivering costings of draft measures to the Treasury ahead of the 26 November Budget.
- The leading option reported is a “two up, two down” package raising income tax by 2p and cutting employee National Insurance by 2p, with the NI reduction potentially limited to earnings up to £50,270.
- Analysts estimate the package could raise about £6bn and would shift more of the burden onto groups who do not pay NI, including pensioners, landlords and many self‑employed workers.
- Reeves also gave her strongest signal yet that she will lift the two‑child benefit cap as part of wider action on child poverty.