The News Agents Budget 2025: Has Reeves saved her job?
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Nov 26, 2025 Torsten Bell, a Treasury minister and fiscal strategist, joins the discussion on the recent Budget, dissecting its implications. He defends Labour's controversial tax increases and the decision to lift the two-child benefit cap. The conversation touches on the chaotic lead-up to the budget, with significant leaks causing political turmoil. Bell explains the concept of fiscal drag and its impact on taxpayers while addressing concerns over the rising welfare state. The hosts also explore the broader effects of these fiscal decisions on future growth and public perception.
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Broken 'One And Done' Promise
- Rachel Reeves promised last year her tax-raising Budget would be "one and done" but returned with further tax rises this year.
- The hosts call the lead-up shambolic, citing leaks, U-turns and chaotic signalling about tax plans.
Fiscal Drag Becomes Central Policy
- The budget freezes income tax thresholds until 2031, expanding fiscal drag and shifting many into higher tax bands.
- The OBR forecasts the tax take will hit a record ~38% of GDP by 2031, with downgraded growth forecasts.
Two‑Child Cap Is A Double‑Edged Win
- Lifting the two‑child benefit cap was presented as a moral priority and will help 560,000 families.
- Hosts warn it may please Labour MPs politically but risks framing Labour as the 'welfare party'.