Funding the Future Reeves is unravelling
Nov 21, 2025
Richard Murphy critiques Rachel Reeves’ budget, highlighting its shaky assumptions and the risks of a looming financial crisis. He predicts falling share prices and potential banking meltdowns that could severely impact pension funds. Emphasizing the need for government intervention over austerity measures, he suggests strategies for economic stabilization, including money creation and bank support. Murphy warns that Reeves’ austerity-driven mindset may leave her ill-prepared for the impending challenges facing the UK economy.
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Budget Built On Fragile Assumptions
- Rachel Murphy warns that Rachel Reeves' budget rests on assumptions unlikely to hold amid an imminent financial collapse.
- He predicts share prices could fall ~40% as AI stocks collapse, triggering wider market stress.
March 2020 Budget Flashback
- Murphy recounts commenting on a March 2020 budget with Mark Littlewood and anticipating a rapid crisis requiring a new budget.
- He uses that memory to argue we will need further fiscal action again soon.
AI Crash Could Spark Bank And Pension Crisis
- Murphy links a sharp fall in AI tech share prices to a potential banking crisis and heavy pension fund losses.
- He says the scale of the shock could rival the 2008 financial crisis for pensions and banks.