Planet Normal Reeves Budget snowstorm of discontent
26 snips
Nov 26, 2025 
Roger Bootle, a prominent British economist and Telegraph columnist, joins the hosts to dissect Chancellor Rachel Reeves' controversial new £30 billion tax rise. Bootle argues the budget will negatively impact businesses and discusses the implications of the pre-budget leak. The conversation also touches on the 'shirking class' label for Labour’s welfare stance, potential recession risks, and the burdens of rising energy costs. Finally, Bootle critiques the size of government, advocating for spending cuts to foster economic growth.
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Huge Two-Year Tax Increase
- Rachel Reeves raised £30bn in taxes, adding to last year's £40bn for a £70bn increase in two years and the highest in decades.
- The package relies heavily on threshold freezes and many small measures rather than a single headline income tax rise.
Markets Look At Net, Not Headline
- Markets view net fiscal impact differently because Reeves paired tax rises with welfare spending increases and targeted offsets.
- Early market reaction suggested gilts thought net tightening was smaller than headline figures implied.
Business Will React Negatively
- Roger Bootle warned the budget will land badly with business and consumers due to many small, irritating measures.
- He predicted few people would emerge feeling better off and business sentiment would fall further.