The late November budget date will give Reeves time to prepare the ground for potential tax changes, raising the prospect of a high-stakes party conference season as Labour heads to Liverpool at the end of September. Reeves is understood to have been exploring several revenue-raising measures over the summer months amid concern that rising borrowing costs, a sluggish growth outlook, higher inflation and welfare U-turns could expose a shortfall in the government finances worth up to 40bn.
Sir Keir Starmer has opened the door for the Labour government to unleash both wealth taxes and an extension of stealth taxes in a bid to balance the books following his welfare U-turns.