Tue, 25 Nov 2025

Tue, 25 Nov 2025 Reeves urges Labour MPs to unite behind the Budget

The chancellor tries to calm nerves in the Parliamentary Labour Party about her tax and spending plans.
Labour MPs are being urged to unite behind Chancellor Rachel Reeves' upcoming Budget, which is expected to contain tax rises and other measures aimed at reducing debt and borrowing. Speaking to Labour's Parliamentary Party on Monday evening, Reeves warned that MPs must "stick together" if they want to win the next election. She said her three key priorities are cutting living costs, NHS waiting lists, and national debt. However, some Labour MPs have expressed concerns about the Budget, with one describing Reeves' speech as "desperate". Reeves is expected to announce a range of measures to raise revenue, including potentially extending the freeze on income tax thresholds, which would draw more people into paying tax over time. She may also introduce new taxes on high-value homes, electric vehicles, and gaming companies. The Budget will also include smaller measures such as scrapping the two-child benefit cap and increasing the living wage. Some Labour MPs are unhappy about the potential for tax rises, with one saying they would unfairly target "hard-pressed hard-working people". Meanwhile, business leaders have warned against introducing too many new taxes, with one describing it as "death by a thousand taxes". Reeves has faced criticism from within her own party in recent months, and some Labour MPs have been calling for her to implement a wealth tax. However, she has refused to rule out the idea of raising income tax rates, which would break the party's election manifesto promise. The Budget is expected to address the government's £20bn funding gap, with Reeves aiming to reduce debt and borrowing while also cutting living costs and NHS waiting lists.
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