Rachel Reeves is considering bolder and more progressive tax changes at her upcoming UK budget than some investors and Labour lawmakers are expecting, as she seeks to head off criticisms that she is only tinkering with Britain’s economy.
The chancellor has told allies the Nov. 26 statement will be a major budget requiring bigger measures, according to people familiar with the matter who spoke anonymously because the contents of the set-piece are still in flux. A productivity downgrade by the Office for Budget Responsibility that’s punched an extra £20 billion ($26 billion) hole in the public finances provides an opening to make larger changes to the tax system to make it fairer, they said.