Daily Politics from the New Statesman Rachel Reeves’ tax-heavy budget
Nov 26, 2025
Join Rachel Cunliffe, Associate Political Editor, and George Eaton, Senior Editor, as they dissect the tax-heavy budget unveiled by Chancellor Rachel Reeves. They explore the significant £28 billion tax rise, the implications of ending the two-child benefit cap, and the proposal for a mansion tax. The duo discusses the political ramifications of freezing tax thresholds and how these measures position Labour’s social-democratic narrative amid criticism. With insights on the OBR leak's impact and the budget's potential risks, it's a lively conversation on the future of British politics.
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Budget Raises Through Multiple Small Taxes
- Rachel Cunliffe says the budget raises £26bn across the parliament using multiple tax measures rather than a single income tax rise.
- The biggest single driver is freezing income tax thresholds, supplemented by measures like a mansion tax and EV road charging.
Removing Two-Child Cap Cuts Child Poverty
- George Eaton and Rachel Cunliffe argue removing the two-child benefit cap is the most effective single measure to reduce child poverty.
- The OBR forecasts it will lift 450,000 children out of poverty by the end of the parliament.
Fiscal Drag Hits Workers And Graduates
- Rachel Cunliffe notes freezing tax thresholds will push nearly 920,000 more people into the higher-rate band and raise about £8bn.
- Graduates face a double hit because student loan repayment thresholds are also frozen, accelerating repayments.