Later this month, Chancellor Rachel Reeves will deliver her second Budget. She has said the Budget will focus on laying strong foundations for the economy, guided by the principles of fairness and opportunity, and with priorities including protecting the NHS, reducing national debt, and improving the cost of living.
There is significant speculation about the choices she will announce, which are expected to have a lasting impact on the country’s future direction. Reeves has said she wants people to understand the current economic circumstances and the reasoning behind her decisions.
Ahead of the Budget, she took the unusual step of delivering a pre-Budget speech. While no specific measures have yet been confirmed, tax increases have not been ruled out. The government previously introduced around £40 billion in tax rises – the largest in over a generation – which Reeves described at the time as a “once in a Parliament” Budget. While Labour’s manifesto included a commitment not to raise taxes paid by working people, she has not confirmed whether further tax increases will be avoided in the upcoming Budget.
In her latest remarks, Reeves said her focus is on addressing both immediate and long-term economic challenges, stating that as Chancellor “it is my job to deal with the world as we find it…not the world as I wish it to be.” She added that “the choices I make in the Budget this month will be focused on getting inflation falling… and creating the conditions for interest rate cuts to support economic growth and improve the cost of living.”
Attention now turns to 26 November, when the full Budget will be announced. To receive our comprehensive commentary and analysis following the announcement, please subscribe via the email sign-up below.
