Thu, 16 Oct 2025

Thu, 16 Oct 2025 Reeves plans 'targeted action' on bills in Budget

The chancellor is planning moves to help households with the cost of living in the Budget.

* Chancellor Rachel Reeves plans "targeted action" in next month's Budget to tackle cost of living challenges.
* She says it's a shared responsibility between the government and Bank of England to reduce inflation, which is forecast to be the highest among G7 nations this year and next.
* Possible measures include cutting VAT on energy bills or reducing regulatory levies added to bills.
* The Treasury will receive the latest economic projections from the Office for Budget Responsibility (OBR) on Monday, revealing how much space there is for such a measure.
* Reeves expects to have to announce tax rises or spending cuts in order to meet her borrowing rules, with some analysts estimating a £22bn gap to fill.
* Despite this, she reiterates her commitment not to raise income tax, VAT, or National Insurance rates.
* The Chancellor also announced a new support scheme to attract financial firms into investing in the UK, which will guide companies through regulations and help them choose locations to set up.
* Reeves addressed concerns about the UK's economic relations with China at the IMF meeting, saying "our national security always comes first".
* She expressed concern over China's export controls on rare earths and other materials, but said there are also opportunities for the UK to sell into Chinese markets.
* The Chancellor confirmed that the NHS may have to pay more for medicines as part of ongoing negotiations with the US administration and its drugs companies.
  >>