The Rest Is Politics 474. Does Reeves' Budget Really Change Anything? What It Means For You
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Nov 26, 2025 Was this the most leaked Budget ever? Rory and Alastair explore the chaos surrounding its unveiling and the implications of Labour's tax strategies. They break down where the £26 billion will come from, discussing frozen thresholds and new levies. The reaction from markets is examined, along with the significance of the OBR's role. Concerns about business stability, NHS productivity, and missed opportunities in deregulation take center stage. Finally, they ponder whether this will be Rachel Reeves's last Budget and the appeal to younger voters.
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Stability Replaced Growth As Central Pitch
- Rachel Reeves shifted from a pure 'growth' pitch to prioritising stability because of fiscal constraints and market sensitivity.
- Freezing tax thresholds and targeted levies raised revenue while aiming to reassure bond markets about fiscal headroom.
Revenue From Many Small Measures Not One Big Hike
- The Chancellor raised roughly £26bn via multiple measures rather than a headline income tax rise, leaning heavily on 'fiscal drag' from frozen thresholds.
- Some measures hit middle earners and private-sector savers, while others raise relatively small sums like the mansion surcharge.
Bond Markets Shape Budget Choices
- Bond markets and gilt yields effectively constrain fiscal choices because higher yields raise borrowing and mortgage costs across the economy.
- Reeves' package aimed to avoid a repeat of the 'Truss-style' market shock by increasing fiscal headroom.