Tue, 04 Nov 2025

Tue, 04 Nov 2025 Dharshini David: Reeves lays ground for painful Budget, but will it be worth it?

The chancellor's pitch: the Budget will be painful, due to the actions of others, but it will be worth it, to tackle debt, help public services and promote growth.
The upcoming Budget will likely include significant tax rises, totaling £20-30 billion, to meet financial rules and support public services. The chancellor argues that this is necessary due to external factors such as poor productivity, tariffs, and supply chain disruption, which have been exacerbated by previous governments' actions. However, economists point out that these external forces were foreseeable and some of the issues are a result of the current government's own policies. The proposed tax rises will likely affect middle- and high-income earners, with options including income tax rate increases, changes to National Insurance Contributions, or a levy on banks and the gambling industry. The chancellor is also considering spending cuts, but analysts warn that any significant reduction in public expenditure could have negative effects on growth and employment. The Budget's success will depend on how effectively the government allocates the increased revenue to boost productivity and support public services.
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