Chancellor Rachel Reeves is preparing to address a significant £30 billion shortfall in public finances, which has raised concerns among businesses and households alike. New analysis from the Institute of Economic Affairs describes the proposed solutions as a "dog’s breakfast" of tax increases. The financial gap has expanded since March 2025 forecasts, primarily due to escalating public spending rather than unexpected economic shocks. Approximately £20 billion of this shortfall is attributed to a long-overdue downgrade in productivity forecasts, while the remainder stems from government policy decisions. These include the cancellation of a £5 billion welfare savings package and the use of optimistic economic assumptions without securing them. Potential tax measures under consideration include imposing national insurance on rental income, closing capital gains tax loopholes, increasing council tax on high-value properties, taxing partnerships, and raising so-called 'sin taxes' on gambling and sugary drinks. Additionally, the Chancellor is expected to extend the freeze on personal tax thresholds beyond 2028, which could generate an extra £8-10 billion through fiscal drag. However, this strategy may undermine consumer and business confidence in the short term, as many measures are likely to be backloaded, taking effect later in the forecast period. The scale of the financial challenge is considerable, with borrowing reaching £17.4 billion in October, exceeding the Office for Budget Responsibility's forecast by £3 billion. This leaves Reeves £9.9 billion worse off than anticipated in March. Rising inflation has further exacerbated the situation, increasing public sector pay, welfare spending, and debt interest, which is expected to surpass £100 billion annually for the remainder of the decade. As the Autumn Budget approaches on 26 November, anxiety is palpable among businesses and households. A recent survey of 400 entrepreneurs revealed that 95 per cent believe the government does not adequately reward hard work. Furthermore, data from the Office for National Statistics indicates that economic uncertainty is the primary concern for firms. Consumer confidence has also declined, adding to the pressures facing the retail sector as the festive season approaches. Political tensions are rising, with Sir Keir Starmer not ruling out income tax increases, despite Labour's manifesto commitment to avoid raising income tax, VAT, or national insurance. Recent analysis by AJ Bell highlighted that a 1p increase in income tax would raise the annual bill for someone earning £35,000 from £4,486 to £4,710. As the budget announcement nears, markets, businesses, and households are hoping for clarity on the public finances, even if the proposed solutions may be painful.