Rachel Reeves, the Chancellor of the Exchequer, emphasized the responsibility of the wealthy in funding the reconstruction of the UK’s public services. During a recent address to Labour MPs, she highlighted the importance of stability in leadership amid ongoing speculation about party leadership dynamics.
In the latest budget, Reeves announced a tax increase of £26 billion aimed at enhancing schools, hospitals, and infrastructure. This decision defied suggestions to adjust spending in light of downgraded productivity forecasts. However, she has faced criticism from the Office for Budget Responsibility (OBR), which expressed skepticism over her assertion that she abandoned a plan to raise income tax due to more favorable economic projections.
Reeves defended her budgetary decisions as necessary and fair, stating that maintaining public services aligned with the commitment made at the last election. She noted the significance of investments in capital projects, including education and healthcare infrastructure, which she believes are essential for stimulating economic growth.
Recently, there have been internal questions among Labour MPs regarding the stability of both Reeves and party leader Keir Starmer. Politically, she dismissed the likelihood of significant challenges to Starmer’s leadership, asserting that members are generally supportive of his success.
With taxes reaching historic highs, Reeves refrained from commenting on potential future tax increases or the distribution of tax burdens across age demographics. Instead, she emphasized that the responsibility lies primarily with high-income and asset holders.
Reeves acknowledged difficulties in public finances but rejected claims of misleading the public regarding financial shortfalls, reaffirming that discussions of tax adjustments had been part of responsible budgeting.
Furthermore, she addressed recent legislative changes related to workers’ rights, indicating that these were necessary to pass critical legislation rather than appease business interests. On special educational needs and disabilities (SEND), she confirmed plans for reform but declined to specify funding sources, focusing instead on improving the existing system without primarily aiming for cost reductions.
Source: https://www.theguardian.com/politics/2025/nov/28/wealthy-shoulder-burden-creaky-public-services-rachel-reeves-chancellor-budget