Political Fix Budget bonanza: tax highs and growth lows
Nov 28, 2025
Sam Fleming, Economics editor at the Financial Times, analyzes the chaos surrounding Rachel Reeves' Budget announcement. Katie Martin, Markets columnist, discusses how the markets reacted to unexpected fiscal news, while Stephen Bush, Politics columnist, delves into Labour's strategy and the political fallout. They explore unprecedented tax rises, winners and losers of the Budget, and the risks tied to political decisions. The team also tackles the implications for public finances and assesses whether Reeves can maintain her political credibility in a tumultuous landscape.
AI Snips
Chapters
Transcript
Episode notes
OBR Report Leaked Before The Speech
- The OBR report appeared on its website about 45 minutes before Rachel Reeves was due to speak, creating chaos in newsrooms and markets.
- Sam Fleming and colleagues scrambled to file budget stories early after discovering the unexpected publication.
Tax Rise Paired With Backloaded Consolidation
- The budget raises about £26bn by 2028-29 to meet fiscal rules and fund higher public spending.
- Much of the fiscal tightening is backloaded to later years, coupling higher taxes with increased welfare spending now.
Welfare Costs Drive Fiscal Pressure
- Welfare spending increases significantly, with the OBR estimating up to £16bn more by the end of the parliament.
- U-turns on welfare reforms and caseload pressures are driving large upward pressure on benefits spending.