Wed, 29 Oct 2025

Wed, 29 Oct 2025 Reeves vows to 'defy' gloomy economic forecasts

The chancellor says investment is the answer to boosting the UK's productivity performance.
Reeves acknowledged that the UK's productivity has been too weak since the financial crisis, but said investment is the solution rather than austerity. She listed plans to invest in key areas such as the NHS, roads, and energy. If Reeves opts not to cut public spending or borrow more money, tax rises are likely to be implemented to meet her fiscal rules. The UK's supermarkets have warned that higher taxes on the industry could lead to further price increases for consumers. The IFS has calculated that a 0.3 percentage point downgrade in productivity would add £21bn to the Budget hole. However, lower interest rates and steady inflation may soften the blow for the Chancellor. Reeves has accepted that the economy continues to face challenges and that many working people feel it is unfair and does not work for them. She said she will make "right, fair and necessary choices" at the upcoming Budget.
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