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4d ago

Reeves Sets Autumn Budget for November 26 as Markets Test UK Fiscal Credibility

Soaring long‑term gilt yields plus a sizeable fiscal shortfall put pressure on the chancellor to set out credible revenue or spending choices within her tax pledge constraints.

Britain's Chancellor of the Exchequer Rachel Reeves leaves from number 11 Downing Street following a cabinet meeting at number 10, in London, Britain, September 2, 2025. REUTERS/Toby Melville/File Photo
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Overview

  • The Treasury confirmed the Budget for November 26 and formally gave the Office for Budget Responsibility the required 10 weeks to produce independent forecasts.
  • Thirty‑year gilt yields touched their highest level since 1998 and sterling weakened, underscoring investor focus on the UK's debt path and fiscal plans.
  • Economists now put the hole in the public finances at roughly £20–£51 billion, raising the likelihood of further tightening to meet rules that balance day‑to‑day spending by 2029/30.
  • Reeves and Keir Starmer have ruled out increases to income tax, national insurance or VAT on working people, steering attention to options such as capital gains, inheritance or property levies, closing reliefs and so‑called sin taxes.
  • Setting a late date gives time to showcase pro‑growth moves and for the OBR to reflect policy changes, while some analysts say Downing Street’s reshuffle has contributed to recent gilt‑market jitters.