Rock & Roll Politics with Steve Richards Has Rachel Reeves calmed the mood of restive Labour MPs… and disillusioned voters?
Nov 26, 2025
Rachel Reeves faces a tough challenge delivering her budget amid speculation and leaks. With sluggish growth, tax hikes become a pivotal strategy. Internal Labour pressure influences decisions, especially around child benefits. The budget aims to calm Labour MPs while addressing wider living standards. There's a critique of high welfare spending alongside calls for reform. The chaos of the OBR leak adds fuel to the media frenzy, and the political landscape remains riddled with competing commitments and fiscal choices as all eyes turn toward the next steps.
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Anemic Growth Is The Central Constraint
- Rachel Reeves faces an economy with anemic growth that constrains spending choices and forces tax rises.
- Without faster growth there isn't the revenue to fund major public services and commitments.
High Rates Rule Out Easy Borrowing
- High interest rates make borrowing far more expensive, limiting the government's ability to borrow its way out.
- That reality pushes Rachel Reeves toward tax increases rather than large new borrowing.
Child Benefit Cap Lifted In One Go
- Rachel Reeves delivered the child benefit cap lift in one go after pressure from Gordon Brown and Keir Starmer.
- The move pleased Labour MPs but required tax rises to pay for it.