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Starmer Scraps Income Tax Hike Amid Fiscal Shortfall

11/16/2025

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Summary

Story summary

British Prime Minister Keir Starmer and Finance Minister Rachel Reeves abandoned plans to raise income tax ahead of the budget.
Reeves seeks alternative revenue to cover a fiscal gap estimated at up to £30 billion ($40.26 billion).
Starmer pledged not to raise taxes for working people and he acknowledged the economy is weaker than expected.
Reeves may adjust tax thresholds.
The pound dipped 0.3% after the announcement.

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Story summary

British Prime Minister Keir Starmer and Finance Minister Rachel Reeves abandoned plans to raise income tax ahead of the budget.
Reeves seeks alternative revenue to cover a fiscal gap estimated at up to £30 billion ($40.26 billion).
Starmer pledged not to raise taxes for working people and he acknowledged the economy is weaker than expected.
Reeves may adjust tax thresholds.
The pound dipped 0.3% after the announcement.