Politics Unpacked Reeves U-turns On Tax... Again
Nov 14, 2025
In this discussion, Alice Denby, City A.M. Opinion and Features editor, and Michael Binion, former Times diplomatic editor, dive into the Chancellor's decision to scrap the planned income tax rise, probing its impact on her credibility. They explore alternative revenue solutions to tackle the fiscal gap without cuts. The conversation also highlights asylum reforms inspired by Denmark, Keir Starmer's global diplomacy with frequent foreign trips, and the BBC's apology to Trump amidst editorial missteps.
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Tax U‑Turn Sparks Market Turmoil
- Rachel Reeves announced then reversed an income tax rise, creating market uncertainty and a pound drop.
- Alice Denby and Michael Binion say the flip-flop damages investment decisions and freezes markets and housing demand.
Give Clear Fiscal Signals Quickly
- Avoid prolonged speculation before a budget because it delays business and household decisions.
- Alice warns that delaying clarity has already frozen housing and investment activity.
Manifesto Constraints Limit Options
- Labour manifesto promises on income tax constrain policy options and backbench revolt.
- Denby argues breaking such a promise is politically toxic and erodes trust.