Chancellor Rachel Reeves confirmed that higher taxes on the UK’s wealthiest citizens will form part of the government’s November budget. Speaking in Washington at the IMF annual meetings, Reeves rejected criticism and “scaremongering” over previous tax plans, emphasizing her commitment to repairing the public finances. Reeves said there would be no return to austerity but hinted at tax increases aimed at the richest. “That will be part of the story,” she told reporters, signaling a balanced approach of raising revenue while supporting economic growth. The chancellor is expected to announce the full package of measures on 26 November. This comes after the Office for Budget Responsibility downgraded the country’s future growth forecasts. Reeves highlighted past criticism of previous tax measures, including changes to non-doms, private equity, and VAT on private school fees. She dismissed claims that these policies would fail or drive wealthy individuals out of the UK. “The OBR will publish updated numbers on all of those things. That scaremongering didn’t pay off,” she said. Although Reeves has ruled out a new wealth tax, experts suggest other options could be considered. These include raising the capital gains tax, imposing national insurance on rental income or partners in professional firms, and creating higher council tax bands. She may also revive plans to overhaul tax-free ISAs to direct savings toward UK investments. Reeves declined to discuss specific measures but emphasized that the budget aims to boost growth and revenue. Last year’s budget raised £40bn in taxes, prompting criticism from businesses affected by increased national insurance contributions. On spending cuts, Reeves said departmental budgets were already set in the recent spending review. She suggested that technology could deliver efficiency savings but stressed her focus remains on investment. “We put investment in to reduce waiting lists, build housing, and strengthen energy infrastructure,” she said. Reeves hopes the budget will reassure bond markets and reduce the UK’s borrowing costs. She contrasted her approach with that of previous Conservative and Reform party policies, emphasizing long-term investment over quick fixes. Asked how she would justify further tax rises, Reeves cited global economic volatility. She noted that international tensions have direct effects on the UK economy, making it necessary to manage public finances responsibly. Reeves criticized the timing of the OBR’s productivity review, which followed her June spending review. She said updated forecasts would better reflect the economic situation and support her government’s priority: growing the economy. The chancellor also pointed to historical factors behind the UK’s weak productivity, including austerity policies and Brexit, which have limited economic growth since the 2008 financial crisis. Analysts expect the OBR to report that public finances will be £10bn–£20bn weaker in five years than previously projected. The upcoming budget aims to close this gap and create a buffer against market volatility, protecting the Treasury from rising borrowing costs. Last year, a £10bn margin for error was nearly eliminated, prompting welfare cuts that were later rejected by Labour MPs. Reeves said a larger buffer will prevent market shocks from disrupting policymaking. She stressed the importance of restoring investor confidence in UK government bonds. Borrowing costs remain higher than those of other G7 economies following the 2022 mini-budget. Reeves aims to bring them back in line while reducing the cost of servicing debt, which now exceeds £100bn annually, much of it paid to overseas investors. Reeves framed the UK as a “beacon of stability” despite high consumer inflation, the highest among G7 nations this year and next, according to IMF forecasts. She said prudent fiscal management would allow the government to fund essential services, including schools, hospitals, and local infrastructure, while maintaining confidence in public finances. The November budget will be a key moment for Reeves, combining higher taxes on the wealthy with a continued focus on growth and investment, while seeking to reassure both markets and the public.