25 Nov 2025, 16:56
The 2025 Budget Announcement in Britain Anticipates New Taxes
- Chancellor Rachel Reeves will present the budget on November 26, 2025.
- New taxes are expected to cover the budget deficit.
- The government aims to eliminate short-term spending, focusing on tax increases.
On November 26, 2025, Chancellor of Great Britain Rachel Reeves will present her budget for the fall, which will become a crucial step for the country's economy. This budget will address ongoing economic issues, such as high inflation and rising government borrowing.
Economists predict that Reeves, in order to cover the budget deficit, will be forced to introduce new taxes. According to data from the Institute for Fiscal Studies, the Chancellor needs to find at least £22 billion to cover the financial gap. It is expected that the new taxes may include an increased tax on property for owners of properties worth over £2 million.
In addition, Reeves may consider changes to pension taxation, which could affect wealthier pensioners. This is deemed necessary to compensate for rising spending on maintaining the national debt, which already consumes over 95% of annual national income.
The government also aims to eliminate short-term spending, which has been observed during the time of the Conservative government. This leaves tax increases as the main option for ensuring revenue. However, experts warn that such changes could trigger economic difficulties and reduce consumer spending.
The British government is facing serious challenges, as economic growth has been sluggish, and inflation remains at a high level, which complicates Reeves' difficult decisions in the budgeting process.
Tags: Europe/Politics/Economy