Unhedged UK Budget blues
53 snips
Oct 14, 2025 
Chris Giles, an economics commentator at the Financial Times with a focus on UK budget and central banking issues, shares insights on the upcoming UK 2026 Budget. He discusses the tension between the desire for robust social services and low taxes, and how Labour's tax promises create a fiscal squeeze. Chris also evaluates the potential need for substantial tax increases and the constraints imposed by bond markets on budgetary choices. The conversation wraps up with some light-hearted commentary on the IMF and those who claim they'll move to Dubai.
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Red Box Ritual And A Boozy Tradition
- Chris Giles recounts the Chancellor's budget ritual of carrying a historic red box and reading the speech in the Commons.
- He also notes the old custom that the Chancellor could drink alcohol during the budget speech, last seen with Ken Clarke.
Budget Day Is Political Theatre
- The UK budget is a theatrical one-day event where the Chancellor reveals tax changes that effectively pass into law immediately.
- This concentrated process leaves little parliamentary debate and makes advance secrecy and market speculation intense.
Services Versus Low Taxes Tension
- The UK offers extensive public services but keeps taxes comparatively low, especially for average earners due to tax-free allowances and modest income tax rates.
- That creates a structural tension between desired services and limited tax revenue.