Jack Grey
Live reporter

In the Commons today, Badenoch pressed Starmer over whether the government would "break another promise" by freezing income tax thresholds. The prime minister refused to rule this out, but said the chancellor would set out her plans in the 26 November Budget.

Starmer insisted that the Labour Budget won't inflict a borrowing spree like former Conservative prime minister "Liz Truss did".

It comes after Rachel Reeves backed away from raising income tax rates last week after better-than-expected economic forecasts.

Badenoch again asked the PM to confirm the government would not break its promise and continue the freeze on income tax thresholds.

But Starmer dodged the question, only saying the Budget would focus on cutting NHS waiting lists, debt and the cost-of-living.

Badenoch also ridiculed Labour for "wanting an applause" due to inflation "coming down a bit" - a reference to inflation dropping to its lowest level in four months to 3.6% - to which Starmer pointed out the 11% rate under the Tories during its term.

We're wrapping up our coverage now but you can read more from our politics team and we hope to see you next week for the Budget.

Image source, Reuters

Every autumn, the government announces its Budget for the year ahead, and we're only one week out from finding out the detail.

We'll find out any changes to our taxes and the government's spending. So what might change?

Income Tax and National Insurance (NI)

Chancellor Reeves has decided not to raise income tax rates, a move that had been widely expected.

However, speculation remains that the chancellor could extend a freeze on income tax and NI thresholds beyond 2028-29 - BBC Verify explains this here.

Pensions

The chancellor is planning to raise about £2bn by limiting a tax break on pension contributions, the Times has reported. It suggested Reeves could put a £2,000 cap on the amount workers can put into their pensions under "salary sacrifice" schemes without paying NI.

Property taxes

Reports suggest the government is considering shaking up property taxes, including a proposal to make more landlords pay NI.

Reeves is also planning to introduce a new tax on high-value homes, the Telegraph has said.

What else?

• The chancellor is considering a new tax on electric vehicles (EVs)
• A limit on how much people can spend on a bike through the Cyle to Work scheme could be introduced, the FT said
• The FT has also reported that the chancellor may cut the tax-free allowance on cash Isas from £20,000 to £10,000
• The chancellor hinted at changes to the two-child benefit cap, saying it was not right that children in bigger families were "penalised"

Here's everything you need to know about the Budget.

What did Badenoch mean about 'freezing' tax thresholds?published at 13:20 GMT 19 November 2025

13:20 GMT 19 November 2025

By Nicholas Barrett and Anthony Reuben

At PMQs, Conservative leader Kemi Badenoch quoted Chancellor Rachel Reeves’ Budget speech from last year in which she said:

"I am keeping every single promise on tax that I made in our manifesto. So there will be no extension of the freeze in income tax and National Insurance thresholds."

Badenoch asked: “Why was freezing thresholds a breach of the manifesto last year but it isn’t this year?”

There have been reports that Reeves may now choose to keep them frozen and the Tory leader asked the prime minister to rule this out - which he did not do.

Freezing income tax and National Insurance thresholds is widely regarded as a tax rise because of a process called "fiscal drag", which sees more people start paying taxes or moving into higher rate tax bands as their wages rise.

These thresholds were frozen by two Conservative chancellors (Rishi Sunak and then Jeremy Hunt) and are in place until April 2028.

Labour’s 2024 election manifesto pledged that the party “will not increase taxes on working people, which is why we will not increase National Insurance, the basic, higher, or additional rates of Income Tax, or VAT”, but it did not mention thresholds.

A further freeze to tax thresholds would not mean raising individual tax rates but it would eventually mean raising more in tax from working people.

We've just heard Keir Starmer and Kemi Badenoch spar on a number of issues during Prime Minister's Questions in the House of Commons.

Here's a quick recap:

• Income tax: Badenoch asked why the government hinted at raising income tax in the Budget only to U-turn on it. Starmer didn't directly answer, but said the Budget would be focused on "Labour values"
• Budget: Badenoch homed in on whether the government will continue to freeze income tax thresholds at next week's Budget. Starmer hit back, saying Labour won't inflict austerity on the UK
• Inflation: Badenoch said inflation had almost doubled on this government's watch, and that Starmer "wants a round of applause because it's come down a little bit". Starmer pointed out that inflation reached 11% under the previous Conservative government
• Industry: Badenoch referred to a statement from the UK chair of ExxonMobil, which warned about the economic risks of government policy. Starmer said the company's workforce is facing a difficult situation and has recorded years of losses

Brian Wheeler
Reporting from the House of Commons

Lee Anderson raises a laugh with a swipe at Labour’s "dog-whistle politics" on immigration (a frequent Labour complaint about Reform).

Laughing Labour frontbenchers look along the line to see if the target of Anderson’s jibe - Home Secretary Shabana Mahmood - is there.

She isn’t.

That's it for PMQs, but stay with us as we bring you all the latest analysis and updates into the afternoon.

Reform UK MP Lee Anderson goes on the offensive - starting his question by claiming that the Labour frontbench is peddling their own form of "dog-whistle politics", which brings whoops of derision and laughter from across the house.

He goes on to claim that Reform local councils have saved money and asks Starmer if he will guarantee that cancelled local and council elections will go ahead next year.

Starmer calls Anderson's performance stand-up comedy, and takes him to task over the dog-whistle comment, asking him about party leader Nigel Farage not condemning controversial comments from his own members.

Lib Dem MP Caroline Voaden asks the prime minister if the government will impose a nationwide ban on mobile phones in schools.

The prime minister says he has teenage kids in secondary school, and therefore knows it's an issue of concern. However, he adds that the reality is that the "vast majority" of schools do ban mobile phones.

"They allow children to bring them to schools but they ban them in school time, in lessons.... we will always keep this under review."

York Outer MP Luke Charters stands up to talk about his own mental health challenges during the traumatic birth of his first son.

He says he's speaking up "in the hope it might encourage other men to do the same" on International Men's Day.

"Will the PM, as a dad himself, agree with me that strength as man means being open about our emotions, and that we should never face challenges on our own?" he asks Starmer.

Starmer thanks the MP for his honesty and bravery. The PM says he's proud to publish the first ever men's mental health strategy today, investing millions for more men to access mental health support.

Ed Davey's second question concerns the illegal dumping of a huge mound of rubbish in Oxfordshire - one of many sites criminal gangs are operating, he says - and asks if the Environment Agency will clean it up.

Starmer says the rubbish mound is appalling and an investigation is under way. He says the Environment Agency will use all powers to make sure that the perpetrators will cover the cost of the clean up.

Lib Dem leader Ed Davey is up, and says that there are more than 300 suicides every year due to "problem gambling", adding that online gambling firms are taking on "record revenues".

Starmer replies that the whole house would want to work together on "anything that can prevent suicide", describing it as an issue that touches "almost every one of us".

"We will of course look at the link between suicide and gambling," he concludes.

If you've been affected by the issues in this post, help and support is available via the BBC Action Line.

Leila Nathoo
Political correspondent

After a slight misfire on her first question - in which she fumbled the timing of the Budget - Kemi Badenoch homes in on whether the chancellor will continue to freeze income tax thresholds next week - and therefore drag more people into the different tax bands.

She’s pointing to Rachel Reeves’ previous comments suggesting that that would constitute a manifesto breach.

If it does happen a week today, the government's opponents will leap on it - even though it was a policy that originated under the Tories.

Kemi Badenoch accuses the chancellor of calling a "ridiculous press conference" ahead of the Budget to "blame everyone else for her having to raise income tax", before U-turning on the decision altogether.

She claims the Labour government is "making it up as they go along" and asks the PM: "Doesn't the country deserve better than government by guesswork?"

Starmer says the choice is between "renewing" the country or returning to "austerity 2.0" with the Conservatives.

Badenoch again quotes Chancellor Rachel Reeves on extending the freeze on income tax thresholds as "hurting working people".

She then brings up a statement by the UK chair of Exxon Mobil which warned about economic risks of government policy, and asks if the loss of UK industry is the price to pay for "having a clueless chancellor".

Starmer says the company's workforce is facing a difficult situation and has made losses for the last five years. He responds to noises from the benches opposite, saying "it's best to do the detail before you chunter", to whoops from his own MPs.

For context: The UK government has said it will not offer financial support to keep the Exxon Mobil plant at Mossmorran open.

Badenoch asks Starmer how people will trust the government if it again freezes tax thresholds.

"Inflation has almost doubled since he came into office and he wants a round of applause because it's come down a little bit," she adds.

Stammer responds to the criticisms of inflation by pointing out that it reached 11% under the previous Conservative government.

"The party opposite have no credit on the economy....[Badenoch] said that Liz Truss got the mini budget 100% right," he adds.

Badenoch says it's clear that Labour will freeze income tax thresholds in the Budget next week.

She repeats a promise made in Reeves' Budget speech last year, where the chancellor said she was "keeping every single promise on tax that [she] made in the manifesto".

She asks why freezing thresholds was considered a manifesto breach last year, but not this year.

Starmer says Badenoch "speculates and distorts" every week at PMQs. He goes on to list his government's successes and says Badenoch wants to go "back to the same failed experiment".

Brian Wheeler
Reporting from the House of Commons

Chancellor Rachel Reeves and Health Secretary Wes Streeting nod along enthusiastically as the PM attacks the Conservatives’ economic record.

His mention of the Liz Truss “mini budget” goes down particularly well with the frontbench pair.

Badenoch continues her questions focusing on the Budget, and claims it is the first one to unravel even before it's been delivered.

"The chancellor's cluelessness, I'm afraid, is damaging the economy now," she says.

"The prime minister needs to end this shambles. So, can he confirm today that he won't break another promise by freezing income tax thresholds?"

Starmer replies: "The Budget is one week today and we will lay out our plans.

"I've said what we will do in terms of protecting the NHS and public services.

"What we won't do is inflict austerity on the country as they did. What we won't do is inflict a borrowing spree like Liz Truss did."

He goes on to say the Conservatives are promising £47bn of cuts with "no details".

Starmer responds by saying next week's Budget will be a "Labour budget with Labour values", to cheers from his side of the chamber.

He says the focus of the Budget will be NHS waiting lists, cutting debt, and cutting the cost of living.

"Inflation is down this morning, the Bank of England have upgraded growth, we've got a record £230bn of investment into this country under this government," Starmer says.

Kicking off her questions for the prime minister, Conservative leader Kemi Badenoch asks why the government briefed that it was looking at raising income tax in the Budget on 26 November, before Rachel Reeves then decided against it.

For context: Chancellor Rachel Reeves decided against raising income tax rates at the Budget next week after receiving better-than-expected economic forecasts, government sources say. The chancellor had given strong indications she would increase the tax - which would have broken Labour's election promise.

Image source, UK Parliament

Brian Wheeler
Reporting from the House of Commons

Heath Secretary Wes Streeting - who was at the centre of stories about possible leadership challenges last week - is in a prime position on the front bench, next to Rachel Reeves and the PM.

Streeting firmly denied the stories and Starmer apologised to him about the briefings - but today is a chance for him to demonstrate loyalty to his leader, having been absent from PMQs last week for a speech in Manchester.