Chancellor Announces Budget As She Admits Britain’s Economy ‘Not Working’

Chancellor Rachel Reeves has announced the date for the UK’s upcoming annual budget as November 26, admitting the economy “isn’t working well enough”.

The announcement comes as Britain’s long-term government borrowing costs have been sent soaring to 27-year highs amid speculation of a £40m “black hole”, putting pressure on Reeves to balance the books.

In a video message posted this morning, the Chancellor of the Exchequer, Rachel Reeves said: “Britain’s economy isn’t broken. But I know it’s not working well enough for working people. Bills are high. Getting ahead feels tougher. You put more in, get less out. That has to change.”

“We’ve got huge potential – world-leading brands, dynamic industries, brilliant universities, and a skilled workforce. We’re a global hub for trade. Fixing the foundations has been my mission this past year. We raised the minimum wage for three million people.”

“Cut NHS waiting lists. Started tearing up planning rules to build 1.5 million new homes.”

“Promised billions more for the country’s infrastructure. Secured trade deals with the US, India, and the EU. And changed Treasury rules so investment reaches every part of the country.”

“But I’m not satisfied. There’s more to do. Cost of living pressures are still real. “

“And we must bring inflation and borrowing costs down by keeping a tight grip on day to day spending through our non-negotiable fiscal rules.”

“It’s only by doing this can we afford to do the things we want to do.”

“If renewal is our mission and growth are our challenge. Investment and reform are our tools. The tools to building an economy that works for you – and rewards you.”

“More pounds in your pocket. An NHS there when you need it. Opportunity for all.”

“Those are my priorities. The priorities of the British people.”

“And it is what I am determined to deliver.

In response to today’s announcement Michael Kill, CEO of the Night Time Industries Association said: “As the Chancellor delivers the Budget on 26th November, the eyes of the country, and our industry, will be firmly fixed on the government’s response to one of the most critical economic moments in recent memory.”

“This Budget is not only a test of fiscal credibility, it is a defining moment for the future of this government and its ability to protect jobs, businesses, and communities across the UK.”

“The night-time economy, which contributes over 153 billion to the UK economy and supports over 2 million jobs, continues to face unprecedented challenges. Without urgent intervention, we risk the irreversible decline of a sector that is central to the nation’s cultural identity, economic growth, and social fabric.”

“The NTIA is therefore calling on the government to act decisively with three clear measures that will give our industry the breathing space it desperately needs”:

1.⁠ ⁠Cut VAT for Hospitality & Night-Time Economy – Permanently reduce VAT for venues, bars, and clubs to support recovery and long-term growth.
2.⁠ ⁠Reinstate National Insurance Thresholds for Employers – Ease hiring pressures on hospitality and night-time businesses to protect jobs.
3.⁠ ⁠Deliver Transactional Reform of Business Rates – Lower the Business Multiplier and reform business rates to provide much-needed relief and stability.

“This Budget cannot be business as usual. The decisions taken on 26th November will define the survival of thousands of businesses and the futures of the people they employ. The government must listen, and act, before it is too late.”

Mark Kent Chief Executive of the Scotch Whisky Association said: “The Chancellor has today announced that she will hold her Budget on 26 November. That gives her 84 days to make the decision to support Scotch Whisky, and fulfil the promise of the Prime Minister to “back Scotch producers to the hilt”.

“At her last Budget, the Chancellor chose to increase further the duty burden on an industry already weighed down by excessive tax and regulation. Despite that decision, tax receipts have not gone up; and more UK pubs and restaurants have been forced to close. Everyone connected with the hospitality industry knows that pubs, restaurants and other venues cannot survive on beer alone – all rely on spirits for profits.”

“That is why we are calling for the Chancellor to announce a multi-year freeze on spirits duty, spanning the lifetime of this parliament; and to ensure that the tax differential with other alcohol categories, which puts Scotch at a competitive disadvantage, does not widen. This would also give respite to the Scottish economy – 70% of all UK spirits are produced in Scotland.”

“84 days. Back Scotch, support Scotland, and sustain growth across the UK.”