Chancellor Rachel Reeves poses with the red box outside number 11 Downing Street on October 30, 2024 in London, England. This is the first Budget presented by the new Labour government and Chancellor of the Exchequer, Rachel Reeves.
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The U.K. Treasury on Wednesday revealed Finance Minister Rachel Reeves will deliver the nation’s Autumn Budget on Nov. 26 amid heightened pressure to resolve a fiscal conundrum over spending, taxation and borrowing.
The U.K.’s long-term borrowing costs rose this week amid market jitters over the forthcoming budget, and how the British finance minister will meet self-imposed fiscal “rules” to make sure day-to-day spending is funded by tax receipts, rather than borrowing, and to lower U.K. debt over the next few years.
Economists predict Reeves will have hike taxes in order to meet her rules, and to maintain some fiscal “wiggle” room of around £10 billion in her budget — headroom which has already been eroded by U-turns on welfare spending cuts and rising borrowing costs. Reeves has repeatedly dismissed the possibility of bending her own fiscal rules on borrowing.
This breaking news story is being updated.
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