Bloomberg Talks UK Chancellor Rachel Reeves Talks Tax Increases, Budget
Nov 26, 2025
UK Chancellor Rachel Reeves, a senior Labour politician responsible for the national budget, shares insights into her recent tax increases totaling £26 billion. She discusses her approach to balancing the demands of bond traders and Labour MPs, highlighting the importance of increased welfare spending and the removal of the child benefits cap. Reeves also addresses the implications of tax changes on growth, emphasizing her commitment to fiscal responsibility while avoiding promises of no future tax rises.
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Doubling The Fiscal Buffer
- Rachel Reeves doubled the fiscal buffer and met the stability rule a year early to reassure markets.
- She framed cutting borrowing and debt as central to reducing cost-of-living pressures and NHS waits.
Faster Consolidation Than Peers
- Reeves points to IMF data showing the UK consolidates faster than any G7 country.
- She says borrowing as a share of GDP will fall across the forecast period.
Phase Reforms And Pursue Efficiencies
- Implement complex tax reforms with phased rollouts to avoid mistakes.
- Combine immediate spending efficiencies with long-term tax changes to balance impacts.