Sat, 29 Nov 2025

Sat, 29 Nov 2025 Budget 2025: What's the best and worst that could happen for Labour?

Three days in, after a tax U-turn and partial climbdown on workers' rights, Laura Kuenssberg looks at what impact Budget week might have.
Economic Implications
* The budget has increased taxes and introduced a new minimum wage, which could lead to a lack of confidence among businesses and potentially cause hiring freezes.
* The official predictions suggest that the economy will remain on a "measly path" for the long term. Political Implications
* The Labour party has emerged with a sharper political identity, but this may not necessarily translate into pleasing the public or improving their economic prospects.
* The budget's focus on child poverty and increased taxes could be seen as a betrayal of promises made to businesses during the election campaign. Trust in Government
* The government is accused of misleading the public about its financial situation leading up to the budget, with some Labour insiders questioning whether this crossed a line into outright deception.
* Repeatedly breaking promises not to increase income taxes has damaged trust in the government among taxpayers and business leaders. Business and Industry Reaction
* Pub bosses have warned that they will face a sharp rise in business rates bills despite government support.
* The UK and Manx economies are facing similar pressures, according to the Isle of Man Finance Minister. Overall, the article suggests that while the Labour party may have emerged with a sharper political identity from the budget process, the economic implications are uncertain and trust in government has been damaged.
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