Chancellor Rachel Reeves has confirmed that the Budget will take place on 26 November, leaving almost three months for speculation about how she intends to address the country’s growing fiscal shortfall.
The timing is later than usual, with last year’s Budget held on 30 October. Critics argue that the longer wait could stall investment and unsettle businesses already nervous about potential tax increases.
Markets have already reacted. On Tuesday, the pound fell sharply while long-term UK borrowing costs climbed to their highest since 1998. Analysts say this reflects investor concerns over the scale of the challenge facing the Treasury.
The Office for Budget Responsibility (OBR) has begun preparing forecasts to accompany the statement. Much attention will be paid to whether it revises its productivity assumptions, which many economists argue have been overly optimistic. Depending on the outcome, Reeves may need to raise at least £20 billion to balance the books, with the risk of a significantly larger gap emerging.
Opposition figures seized on the announcement. Andrew Griffith, shadow business secretary, warned: “Almost three months of speculation and uncertainty is a disaster for business and could be a death sentence for some. Few will hire or invest whilst waiting for the next tax axe to drop. It shows how little Labour understand or cares about business.”
With the date set, Reeves now faces weeks of scrutiny over her plans to restore stability to the public finances.
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