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Reeves Won’t Rule Out 2026 Tax Rises After Budget Lifts Burden to Post‑War High

She says the November package doubled fiscal headroom to about £22bn, making additional increases less necessary.

Overview

  • The chancellor declined to commit to no further tax hikes, arguing it is too soon to write another Budget.
  • Her November statement raised £26bn and extended the freeze on income tax thresholds until 2031.
  • Officials expect the threshold freeze to bring about 1.8 million more people into higher or new tax liabilities over time.
  • Combined with an earlier package, reported tax increases since Labour took office total roughly £66bn, pushing the overall burden to its highest since the Second World War.
  • The IFS warned of weaker living standards and BMG polling for The i Paper showed a negative public reaction, as Reeves also backed more flexible FCA mortgage lending and planning reforms to help first-time buyers.