Chancellor Rachel Reeves has confirmed she will unveil her second Budget on November 26 as Britons brace for a financial "nightmare before Christmas".
The Treasury is poised to raid the pockets of taxpayers yet again as the Chancellor looks to plug a black hole which could be as high as £50billion.
The Chancellor hiked taxes by £40billion in her first Budget after entering No11, mainly through raising employers' National Insurance Contributions from 13.8 per cent to 15 per cent.
Confirming the Budget will take place on November 26, the Treasury said: "The Chancellor Rachel Reeves has commissioned the OBR to prepare an economic and fiscal forecast to be presented to Parliament alongside the Budget on 26 November 2025."
Ms Reeves attempted to take on the narrative that Britain's economy is broken in a video released shortly after the Budget date announcement.
After admitting that the economy "isn't working well enough for working people", the Chancellor added: "We need to bring inflation and borrowing costs down.
"We do that by keeping a tight grip on day-to-day spending and by enforcing my non-negotiable fiscal rules."
However, No11's confirmation has already dampened festive spirits.
Shadow Justice Secretary Robert Jenrick told GB News: “Rachel Thieves is bringing nothing but gloom with her nightmare before Christmas Budget.
"Just as Britons will be looking for some festive cheer, the Chancellor is preparing to raid hard-working taxpayers' pockets.”
Tory MP Greg Smith added: "Labour are clearly sharpening the knives ahead of Christmas, ready to fillet more than just the turkeys, but people’s bank accounts."
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|Rachel Reeves is expected to unveil her second Budget on November 26
Meanwhile, Reform UK's Doge chief Zia Yusuf told the People's Channel: "Christmas is supposed to be a time of cheer, but Rachel Reeves will serve up a morsel of soul-crushing taxes on working people to pay for foreign citizens to have a life of leisure in Britain."
Shadow Northern Ireland Secretary Alex Burghart added: “Looks like the Grinch is coming early this year. Expect the Government to tax you out of house and home."
No10 already said earlier this week that Ms Reeves's second Budget will not take place before mid-November at the earliest.
The Chancellor is required to give the Office for Budget Responsibility, which received fury from Sir Keir Starmer over its analysis of the Prime Minister's welfare cuts, at least 10 weeks to carry out its assessment of the Government's tax and spending plans.
PA | Prime Minister Sir Keir Starmer and Chancellor of the Exchequer Rachel Reeves have taken a polling hit over the country's economic woes
The Prime Minister's official spokesman said: “They’ll follow the usual process, they’ll set out 10 weeks, and you’ll get that from the Treasury in the usual way.”
However, the Treasury's confirmation also comes just days after a No10 shake-up saw Ms Reeves's right-hand man, Darren Jones, move out of the Treasury.
Mr Jones, who had served as Chief Secretary to the Treasury, was instead shifted to No10 to take up the role of Chief Secretary to the Prime Minister.
However, it has been suggested that Ms Reeves could look to slap a higher levy on landlords in a bid to boost revenue by targeting "unearned income".
PA
|Alex Burghart, Robert Jenrick and Zia Yusuf all warned that the Budget will put a dampener on Britons' festive cheer
The Prime Minister did little to quell concerns ahead of the summer recess when he opened the door to a manifesto-busting income tax increase.
When asked multiple times whether he would explicitly rule out breaking the manifesto pledge of not raising VAT, income tax and corporation tax, Sir Keir said: “In the autumn, we’ll get the full forecast and obviously set out our Budget.”
No10's shake-up this week reignited fears when Baroness Shafik, a former Bank of England deputy governor who previously called for wealth taxes, was appointed as the Prime Minister's new chief economic adviser.
Ms Reeves is coming under growing pressure to turn the UK's economic fortunes around.
The OBR is expected to formally downgrade the country’s growth prospects and Government borrowing costs have also hit a 27-year high.
New polling conducted by YouGov also suggests the public is far from receptive to any tax increases this autumn.
PA | Rachel Reeves's tax changes have proven to be controversial with the public so far
Nearly six-in-10 voters believe it would not be justified for the Chancellor to hike levies, the pollster revealed.
The YouGov poll, conducted for The Times, also found that 55 per cent of voters believe the Prime Minister should sack Ms Reeves.
A plurality of Labour voters - 41 per cent - also believe Ms Reeves should be removed from No11, with just 30 per cent saying she should remain in post.
However, Sir Keir today insisted that his relationship with Ms Reeves is "stronger" following the recent reset.
A spokesman for the Prime Minister said: "It reflects a strengthening of the relationship between the Prime Minister and the Chancellor, a determination to drive growth in the economy, a recommitment to our robust fiscal rules."