10 Nov 2025Think tank the Resolution Foundation has called on Chancellor Rachel Reeves to use the Autumn Budget on 26 November to put the public finances in order and reduce prices and poverty. In its Autumn Budget preview, the Foundation suggested that productivity growth is 'likely to be large at nearly 0.3 percentage points'. It said higher debt interest costs could add £6 billion to borrowing alongside £7 billion in policy U-turns that have occurred since March. Additional spending would be needed to aid the government in reducing prices and poverty, the Resolution Foundation added. It stated that tax rises of £26 billion are likely to be required, and avoiding increasing the 'big three' taxes – VAT, National Insurance (NI) and Income Tax – 'risks doing more harm than good'. James Smith, Research Director at the Resolution Foundation, said: 'Reassuring the markets about the state of the public finances, paying for policy U-turns and providing fresh cost of living support won't come cheap. Tax rises of £26 billion are likely to be needed. 'The Chancellor should look to make sensible tax reforms to car taxes, dividends and capital gains. Switching 2p of employee NI onto Income Tax would raise £6 billion while protecting workers' wages. Together, this will help to deliver a decisive Budget centred around prices, payslips and poverty reduction, and that shifts the focus away from black holes and back onto boosting growth.'