Transport Secretary Heidi Alexander rejected claims that weeks of pre‑Budget briefings have harmed the economy, following criticism that speculation has caused paralysis among businesses and consumers. Speaking on BBC One’s Sunday with Laura Kuenssberg on 23 November, she said such conjecture is routine and urged observers to wait for the chancellor’s statement on Wednesday 26 November.
Alexander’s comments followed an intervention from former Bank of England chief economist Andy Haldane, who described the recent run‑up as a “fiscal fandango” and argued the process is “too lengthy” and “too leaky”. He said uncertainty over potential measures has held back decisions by companies and households, contributing to flatlining growth.
The Budget is expected to include tax changes aimed at closing a multibillion‑pound gap in the government’s spending plans. Ministers had signalled that income tax rates were being considered, but government sources briefed last week that Chancellor Rachel Reeves would not proceed after better‑than‑expected economic forecasts.
That approach aligns with Labour’s election pledge not to raise the basic, higher or additional rates of income tax. Officials have not ruled out extending the freeze on income tax thresholds, which would raise receipts through fiscal drag as nominal pay increases bring more people into tax, or into higher bands, without altering headline rates.
Addressing process concerns, Alexander said ministers had been operating on “shifting sands”, citing a downgrade to productivity forecasts and a difficult global outlook. She maintained that the chancellor’s priorities have been clear and will be formalised in the Budget documentation on 26 November.
The Conservative Party has called for an investigation into pre‑Budget disclosures. In a letter to the Treasury’s permanent secretary, shadow chancellor Mel Stride argued that either ministers sanctioned widespread briefing of confidential material or unauthorised leaks occurred within the department, both carrying real‑world consequences.
Alongside tax policy, the government has framed the statement around the cost of living, announcing that rail fares in England will be frozen in 2026 for the first time in decades. Ministers have also highlighted priorities including reducing NHS waiting lists and managing the national debt.
Welfare policy is in scope. The chancellor is expected to scrap the two‑child limit, which restricts universal credit and tax credit support to a family’s first two children. The move, pressed by Labour MPs, could cost more than £3bn, according to figures cited by supporters of the change.
Alexander declined to confirm the welfare change but said tackling child poverty is central to Labour’s programme. The Conservatives argue the two‑child limit is a question of fairness and urge tighter control of welfare costs to avoid broader tax rises. Green Party leader Zack Polanski called scrapping the limit a “victory” and advocated raising more from the wealthy rather than from people on low incomes or out of work.
For policy professionals, the tests on 26 November are the detail and timing of any threshold freeze, the scale and distribution of smaller tax rises, confirmation of the rail fares decision for England, and the final determination on the two‑child limit. Updated official forecasts released alongside the statement will set the parameters for fiscal headroom and delivery timelines.