Sir Lindsay Hoyle, the Speaker of the House of Commons, has derided Rachel Reeves's upcoming budget as a 'hokey cokey budget', accusing ministers of leaking major announcements and creating confusion. The chancellor, facing a £20bn financial shortfall, is expected to deliver one of the most heavily briefed budgets in history on Wednesday.
Reeves has abandoned plans to raise income tax, which would have broken a key Labour manifesto pledge, after internal party turmoil. Instead, she is expected to extend the freeze on income tax thresholds until 2030, a move that could raise £7.5bn a year but has been criticised as a 'sneaky' tax rise that will hit working people.
The budget is also set to include a cut to the cash Isa limit from £20,000 to £12,000, which finance bosses warn could raise mortgage rates. Other potential measures include changes to the two-child benefit cap and a possible 'mansion tax', though details remain fluid.
Heather Stewart, the Guardian's economics editor, described the run-up as 'wild' and noted that budgets should ideally be dull with minimal speculation. Reeves has stated she is prioritising the NHS, the cost of living, and public debt, insisting she has stuck to Labour values.
