Rachel Reeves is reportedly planning to increase taxes in the upcoming Budget to secure £53 billion of additional funding for the NHS. The Chancellor is said to be committed to safeguarding this increase for the health service at any cost. Despite the Labour Party’s manifesto pledge not to raise income tax or VAT, Defence Secretary John Healey declined to confirm their adherence to this promise.

Acknowledging the impact of recent economic downgrades, there are considerations of raising the basic rate of income tax, a move not seen since 1975, and exploring higher council tax bands for expensive properties to boost revenues. The Chancellor’s top priorities are said to be reducing NHS waiting lists and national debt, with a firm commitment to maintaining a 2.8% annual budget increase for the NHS.

However, the Office for Budget Responsibility’s downgrade of UK productivity levels by 0.3% poses challenges, potentially leading to a £20 billion rise in public sector borrowing without tax adjustments. While Labour aims to stimulate economic growth, they recognize the adverse effects of longstanding economic struggles under the Tory government.

Reeves faces financial constraints due to increased borrowing costs and inflation, alongside pressures to reconsider policies like winter fuel payments and the two-child benefit limit. Anticipated modifications to the latter stem from mounting pressure from MPs and anti-poverty advocates.

In contrast to previous assurances not to hike VAT, national insurance, or income tax, Keir Starmer’s stance appears uncertain following his evasion of a direct question during PMQs. With the Budget approaching on November 26, he emphasized a commitment to fostering a stronger economy, reducing NHS waiting lists, and securing a brighter future for the nation.