UK Budget to be delivered on November 26

Chancellor of the Exchequer Rachel Reeves announced today that she will deliver the UK government’s annual budget on November 26, vowing to keep a “tight grip” on public spending in a bid to bring down inflation and borrowing costs.

“Bills are still high and getting ahead feels tougher,” Reeves said. “You put more in, get less out. That has to change.”

Reeves highlighted the government’s achievements since the start of the current Parliament, including securing trade deals with the United States, India, and the European Union, tearing up planning rules to build 1.5 million new homes, and cutting NHS waiting lists.

Despite these efforts, she stressed the need for fiscal discipline: “We must bring inflation and borrowing costs down by keeping a tight grip on day-to-day spending through our non-negotiable fiscal rules,” Reeves said.

The budget announcement comes at a delicate moment for the UK economy. Financial markets have grown increasingly wary of Britain’s fiscal position, with 20- and 30-year government borrowing costs hitting their highest levels since 1998. Inflation remains the highest among the G7 economies, constraining the Bank of England’s ability to lower interest rates.

Reeves and Prime Minister Keir Starmer face mounting pressure to balance competing demands: supporting stretched public services, boosting economic growth, and sticking to their pledge not to raise the rates of major taxes ahead of the next election.

Economists warn that Reeves may now need to address an estimated £20 billion fiscal shortfall, worsened by sluggish growth, rising borrowing costs, and recent U-turns on welfare and fuel subsidies.

In last year’s budget, Reeves delivered the largest tax increase in over 30 years, raising an additional £40 billion, but she has ruled out a repeat of such measures.

The Office for Budget Responsibility will publish updated growth and borrowing forecasts alongside the November budget.