Sir Keir Starmer is preparing for a significant political confrontation this Wednesday, facing his final Prime Minister's Questions session against Kemi Badenoch before Labour delivers its crucial first autumn Budget.
Inflation Drop Sets the Stage
The high-stakes political showdown comes amid encouraging economic news, with official figures showing inflation fell to 3.6 per cent in October. This development provides Chancellor Rachel Reeves with a welcome backdrop as she finalises her Budget plans scheduled for 26 November.
While acknowledging the positive trend, Ms Reeves emphasised the ongoing pressure on household finances. "It's welcome that inflation has fallen... But I recognise that inflation, the cost of living, is still a big burden on families right across the country," she stated.
The Chancellor has made clear her intention to use next week's fiscal statement to provide further relief, adding: "And that's why in the Budget next week, I'll be taking targeted action to bring down inflation to address the cost of living."
Budget Scrutiny and Tax Debate Intensifies
The government faces mounting pressure regarding its Budget decisions, with expectations of significant tax measures to address spending requirements. Ms Reeves is widely anticipated to implement tax increases to bridge a multibillion-pound shortfall in public finances, though reports suggest she has ruled out major income tax rises that would breach manifesto commitments.
Opposition voices and policy experts have intensified calls for the Chancellor to focus any tax changes on wealthier individuals rather than implementing broad-based increases. Green Party leader Zack Polanski demanded that Ms Reeves's statement "must be a cost-of-living Budget to slash people's bills and make our country affordable again".
In a formal submission to the Treasury, Mr Polanski and fellow Green politicians proposed specific measures including a wealth tax and reforms to capital gains tax to align it more closely with income tax rates.
Political Implications and Next Steps
Today's PMQs session represents the last major parliamentary test for Sir Keir Starmer before the Budget announcement, offering a final opportunity to challenge the government's economic approach ahead of the fiscal statement. The combination of falling inflation and looming tax decisions creates a complex political landscape for both government and opposition.
All eyes now turn to next Tuesday when Rachel Reeves will reveal her complete Budget package, which promises targeted measures against the cost of living while navigating difficult decisions about taxation and public spending.
