Experts suggest that tomorrow’s Spending Review, led by Chancellor Rachel Reeves, is likely to set the tone for the autumn Budget.

Officially the review is not a fiscal event so is unlikely to involve any direct references to tax changes.

But the National Residential Landlords Association says a key element to watch for is the publication, alongside the review, of a long-term housing strategy coming from deputy Prime Minister Angela Rayner.

Tom Bill, head of residential research at lettings agency Knight Frank, says: “[The] spending review may provide a few clues about the government’s priorities and political framing for the Budget, which is expected to take place in late October or early November … Prime Minister Keir Starmer recently said the UK can’t tax its way to growth. However, it followed the leaking of a memo from deputy Prime Minister Angela Rayner to the Chancellor last month which set out ways to do precisely that.

“Rachel Reeves faces three difficult choices in order to meet her own fiscal rules. Cut spending, which will annoy both backbenchers and frontbenchers. Raise taxes, which voters won’t like and could be self-defeating. Or convince highly sceptical financial markets that she is going to loosen her own fiscal rules without sending bond yields and mortgage rates higher.

“It’s an unenviable position. But it’s also why any policy that drives away foreign investment or shrinks the tax base in such circumstances has obvious flaws.”

The NRLA – in a preview for landlord members – says that: “Behind the headline figures [of Reeves’ announcment] lies a simple truth that the Government must recognise – when funding for housing and services is stretched, the private rented sector ‘safety net’ becomes ever more vital. The Spending Review is an opportunity to acknowledge this and back it up with the funding needed to deliver safe, sustainable homes.”