Rachel Reeves vows to make ‘necessary choices’ in Budget, but promises ‘fairness at its heart’

Chancellor Rachel Reeves has vowed to take the necessary choices to deliver strong foundations for the economy in a rare pre-Budget speech in Downing Street.

Addressing the nation, Reeves said the Budget later this month would prioritise protecting the NHS, reducing the national debt and improving the cost of living as the country faces a myriad of challenges.

She said: “I will make the choices necessary to deliver strong foundations for our economy – for this year and years to come.

“It will be a Budget led by this government’s values, of fairness and opportunity and focused squarely on the priorities of the British people.”

Among the challenges the Chancellor she said the country faces included persistent inflation due to volatile supply chains, tariffs from the United States that has knocked business confidence and an increased cost of borrowing up worldwide.

She also warned that the Office for Budget Responsibility is set to conclude that productivity is weaker than previously thought in its review of the supply side of the British economy.

While Reeves did not outline specific measures that will be included in the Budget, the Chancellor sought to make the case to defend the proposals she will outline in three weeks’ time, promising that it will have “fairness at its heart” and seek to cut inflation and facilitate cuts in interest rates.

However, she hinted that the choices she will make may not be popular, by saying she would not be swayed by political convenience or public opinion.

Tax rises are expected to be announced at the Budget, with speculation that the Chancellor may break Labour’s manifesto commitment to not raise VAT, income tax or national insurance on “working people”.

Reeves underlined her commitment to her “ironclad” fiscal rules and said: “The less we spend on debt interest, the more we can spend on the priorities of working people, NHS, our schools, our national security, the public services essential to both a decent society and a stronger economy.”

The Chancellor will unveil the Budget on Wednesday, November 26.

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