The Budget will take place on 26 November, the Treasury has confirmed, with the Chancellor expected to announce measures to plug a £20bn hole in the public finances.
As part of these moves, Rachel Reeves is considering raising a range of property taxes.
These packages may cover stamp duty and council tax reforms, a so-called mansion tax for higher value homes and the introduction of national insurance on rental income for landlords.
Reeves says that “Britain’s economy isn’t broken” but admits that it is not “working well enough for working people”.
She points out that over the last year she has worked to fix the UK’s foundations, including raising the minimum wage, cutting NHS waiting lists, as well as starting to “tear up planning rules to build 1.5 million new homes”.
Last year, the Budget was on 30 October, a later date this year is in part because the Treasury must give the Office for Budget Responsibility, the independent government spending watchdog, 10 weeks to scrutinise the Chancellor’s plans.
The news comes as UK borrowing costs hit a fresh 27-year high this morning, following yesterday’s highs.
The yield on 30-year bonds jumped as high as 5.75% early on Wednesday, the highest level since 1998.
This comes after the yield on long-dated government bonds jumped to 5.698% on Tuesday.
However, mortgage brokers point out that so far the moves have only resulted in rises in 10- and 30-year Sonia swaps, which affect home loan rates.
By contrast, two- and five-year Sonia swaps are lower than they were a year ago. These shorter-term loans account for around three-quarters of all outstanding UK mortgages.
