Politics At Sam and Anne's What is the positive case for Rachel Reeves’ budget?
Nov 26, 2025
The latest budget reveals a mix of taxes, including mansion and gambling taxes, alongside spending commitments like scrapping the two-child benefit cap. Sam and Anne analyze whether Rachel Reeves' plan caters more to MPs and markets than to everyday voters. They discuss the implications of raising living standards while managing a £30 billion gap, all without increasing income tax. Key pitfalls and potential omissions are also highlighted, noting the risks for middle-income earners facing significant tax burdens.
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A £30bn Fiscal Hole Drives The Budget
- Rachel Reeves needs to find roughly £30bn, largely in taxes, to plug a fiscal hole created after welfare reform was rejected.
- That gap forces tax rises and lower borrowing to meet her fiscal rules and reassure markets.
Leaks Are A Market-Softening Strategy
- The Treasury deliberately leaked plans to soften market and parliamentary reaction after the 2022 mini-budget shock.
- Pre-briefs and trails aimed to reduce surprise and make bad news easier to swallow.
Multiple Targeted Tax Rises, Not A Single Big Hike
- Major revenue measures include freezing tax thresholds (£8bn), a mansion tax on £2m+ homes, and a £2,000 annual pension allowance cap.
- A wider smorgasbord adds EV, gambling, tariff and sugar tax changes to raise further receipts.