Today in Focus Mansions, milkshakes and the minimum wage: Labour’s 2025 budget
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Nov 27, 2025 
Heather Stewart, the Economics editor at The Guardian, dives into Labour's budget unveiling by Rachel Reeves, dissecting its potential impact on the UK economy. She discusses the challenges Reeves faced, including political pressures and spending reversals that could affect families. Stewart explains controversial measures like the mansion charge and increased taxes on unearned income. With rising minimum wages and theatre in the Commons, she evaluates whether this budget can truly support working people and restore public trust.
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High-Stakes Multi-Audience Budgeting
- Rachel Reeves faced a politically and economically difficult budget with multiple audiences to convince.
- She needed to raise taxes while reassuring voters, Labour MPs and bond markets to stabilise confidence.
Welfare Reversals With A Moral Case
- Reeves reversed several unpopular Tory welfare moves, including the winter fuel allowance cut and disability benefit cuts.
- She abolished the two-child limit to reduce child poverty and defended this as a moral and practical correction.
Use Cost Cuts To Soothe Short-Term Pain
- The government froze rail fares and prescription costs and aims to lower energy bills to ease living costs.
- Lowering inflation could prompt Bank of England rate cuts and reduce borrowing and mortgage costs.