Rachel Reeves delivers pre-Budget speech, signalling further tax rises

Chancellor Rachel Reeves’ last-minute pre-Budget speech has stirred attention, not just for its timing, but for its tone. Delivered weeks ahead of the Autumn Budget, the address was unexpected and direct in laying out the fiscal challenges facing the UK. While no specific tax measures were announced, Reeves delivered an unmistakeable message that the government is preparing the ground for further tax rises.

This approach aligns clearly with the political strategy discussed by former Chancellor George Osborne in our recent Budget Insights webinar. Osborne explained that getting the ‘bad news’ out early helps prevent it from dominating headlines on Budget day, allowing the government to focus attention on its growth and investment measures instead. Reeves appears to be following that same strategy.

• Reeves’ pre-Budget speech signals tax rises are highly likely, with mounting speculation of a rise in income tax
• Up to £30bn may be needed to meet fiscal rules
• No taxes have been ruled out, in stark contrast to Labour’s election manifesto pledge.
• The best defence is an adaptable financial plan 

Reeves pointed to a £22bn shortfall and stressed the need for “hard choices” to restore economic stability. With borrowing costs still elevated and productivity growth sluggish, the Treasury is under pressure to find new sources of revenue. Independent forecasts suggest that up to £30bn may be needed to meet fiscal rules without resorting to spending cuts.

This was not just a routine update, but a deliberate move to prepare the public for a significant change in direction. Labour entered government on a manifesto pledge not to raise income tax, so even the possibility of revisiting that commitment is a major development. By holding a dedicated press conference weeks before the Budget, Reeves signalled just how important it is to manage expectations.

This speech opens the door to further significant changes in the Autumn Budget on 26 November.

For individuals and business owners, this moment calls for a calm, measured approach. The best defence against sudden tax changes is a financial plan that can adapt. That might mean reviewing investment structures, reassessing pension contributions or preparing for shifts in income tax thresholds.

While everyone should be on notice that significant changes could be coming, it’s important not to make hasty decisions based on speculation. The Chancellor has signalled that tax rises are likely, but the details, such as which taxes, how much, and when, will only be confirmed on 26 November. Acting too early could lead to unnecessary costs or missed opportunities.

Instead, focus on building flexibility into your financial strategy. This means understanding where you might be exposed to potential changes and having options ready to implement once the Budget is announced. A well-prepared plan allows you to respond quickly and confidently without second-guessing every headline.

At Evelyn Partners, we are watching developments closely. Our teams are ready to help clients navigate potential changes and adjust their strategies accordingly. The Autumn Budget could reshape the tax landscape, but with the right planning, you can stay ahead of the curve.

For expert analysis in the immediate aftermath of the Autumn Budget announcement, sign up to our post-Budget webinar, where we’ll be covering all of the announcements and what they mean for you.