Reeves admits 'more to do' as budget set for late November

Rachel Reeves acknowledged the UK economy was "not working well enough for working people" as she announced that her second budget would take place on 26 November, amid mounting speculation over tax increases.

- Heather Stewart Richard Partington

The later than usual date will probably lead to weeks of speculation about how the Treasury will raise additional revenue - but the chancellor hopes to use the time to set out new pro-growth reforms.

She insisted yesterday the economy "isn't broken" but conceded there was "more to do". "Bills are high. Getting ahead feels tougher. You put more in, get less out. That has to change," Reeves said.

Ruth Curtice, the director of the Resolution Foundation thinktank, said the statement would probably be "one of the toughest second budgets in living memory".

She added: "With higher gilt yields currently adding over £3bn to debt interest costs, and over £6bn of policy U-turns announced since March, the chancellor is already on track to miss her fiscal rules. With a growth downgrade also likely, significant fiscal tightening will be needed."