Reeves brushes off blame for tax hikes on Brexit and austerity ahead of budget storm
Chancellor Rachel Reeves used an unusual street address to lay the groundwork for her future budget, to sign off on those tough decisions on future taxation – but she wanted to look back on the pressure on public finances”.
In the speech, he said that the UK economy was not badly calculated because of Labor policies but because of “long-term factors” such as Tory austerity costs and global borrowing costs. “We have to deal with the world as it is, not how we wish,” he said.
Ms Reves presented her forthcoming financial package as a choice between “investment and optimism, or cuts and divisions”. He said he would do “the right thing rather than the popular thing”, putting an emphasis on protecting the NHS, reducing the national debt and improving the cost of living. But he also acknowledged that the necessary measures could mean pain for taxpayers – especially “table owners and property owners – for years to come.”
With public finances revealed to be weaker than expected, analysts estimate that he may need to raise about $20 billion to $30 billion in additional taxes.
Ms Reeves insisted that any future tax decisions were not taken lightly: “Any president of any party will be looking here at the decisions I’m facing,” citing previous governments and the global recession.
He specifically pointed to a barrage of international headwinds – from US tariffs and conflicts in Europe to disruptions in cross-border goods and jumple disruptions – as said by Britain’s growth prospects. “The world has changed,” he said, “and we are not immune to that change.”
Although he confirms the manifesto he promises not to raise VAT or pay taxes, he paused not to open the income tax, or to leave the tax open – tax “or hike the capital of the tax.
The opposition groups were caught in the words, warning Ms. they restarted the MS who set this stage to hide the important tax as an effective budget. Conservatives argued with the Chancellor putting himself in question to others.
With the next budget scheduled for 26 November 2025, markets will be watching closely. Ms Reeves warned that if lenders and investors question her commitment to fiscal rules, the UK’s borrowing costs could rise further – by forcing deeper cuts or higher taxes.
Price, the chancellor has raised expectations of difficult decisions while making it clear that it will not be everyone who is responsible for the arrest – the outcome of the collision case, which is chaos. Whether society accepts that transplant – and whether its financial package brings growth alongside pain – remains an important question.
