In a dramatic and unexpected prelude to the Chancellor's statement, the Office for Budget Responsibility (OBR) has published its full report on the Autumn Budget, revealing plans for a new mansion tax and an extended freeze on income tax thresholds.
An Unprecedented Early Release
The OBR's report was released hours before Chancellor Rachel Reeves was due to deliver her Budget speech in the House of Commons. This highly irregular move shocked political observers and the public alike, as the document is typically published alongside the Chancellor's statement.
The OBR has since apologised for the early release and confirmed that an investigation will be launched into the matter. Under normal circumstances, the report would not have been made public for another hour and a half.
Key Budget Measures Revealed
The leaked document outlines several significant tax changes. Most notably, it confirms the introduction of a high-value council tax surcharge on properties worth more than £2 million.
According to the OBR's forecasts, this new mansion tax is expected to raise £0.4 billion for the Treasury.
Furthermore, the report discloses that the government plans to freeze income tax thresholds for an additional three years, extending the measure from 2028-29. This move contradicts Chancellor Reeves' previous statement that such an action would "hurt working people."
Wider Implications for Taxpayers
The extended freeze on tax thresholds forms part of a broader set of personal tax changes projected to increase receipts by £14.9 billion in 2029-30. The threshold freeze alone is expected to raise £8.0 billion.
This policy is likely to have a significant impact on millions of people as wages continue to rise. More individuals will be pulled into higher tax bands, resulting in increased income tax payments. The change has been particularly feared by pensioners, who could be disproportionately affected in the coming years.
The full details of these measures were due to be explained by Chancellor Reeves during her Commons address, but the OBR's premature publication has brought them into the public domain ahead of schedule.
