Wake Up to Money Reeves' headroom headache
Dec 1, 2025
Carleen Jackson, Chief Executive of Cloud9, shares insights on digital transformation and the tech sector's hiring challenges. Shanti Kellerman, Co-CIO at Seven Investment Management, discusses market reactions and investor behavior. They delve into Chancellor Rachel Reeves' budget and its impact on tech funding. Carleen highlights opportunities for startups despite economic constraints, while Shanti analyzes tweaks to ISAs aimed at stimulating long-term investment. The conversation wraps with thoughts on the importance of government support for emerging sectors, especially AI.
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Episode notes
Headroom Was Bigger Than Reported
- The OBR's more optimistic forecasts meant the Chancellor actually had about £4bn headroom, not a large black hole as widely reported.
- Martin Beck and Shanti Kellerman say the communication, not the fiscal need to build headroom, caused most political damage.
Markets Showed Little Reaction
- Markets barely moved after the budget because gilt yields and interest-rate expectations were largely unchanged.
- Shanti Kellerman suggests investors hope some proposed tax measures may never be implemented.
Communication Shapes Policy Power
- Trust and clear communication shape policy effectiveness by influencing expectations.
- Martin Beck warns poor messaging can reduce the impact of fiscal measures even if they're economically justified.