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Autumn Budget 2025 Live: Rachel Reeves promises not to bring the UK back to austerity
- Budget recap: What's been announced so far
- What we can expect to be announced today
Luke Alsford,
Sarah Hooper and
Craig Munro
Published November 26, 2025 6:20am
Updated November 26, 2025 6:20am
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The Chancellor has vowed that she will not return the UK to austerity ahead of the unveiling of her second Budget.
In a filmed video ahead of the Budget, Rachel Reeves said the Government had started to see results in the past year with ‘wages rising faster than inflation, hospital waiting lists coming down, and our economy growing faster and stronger than people expected’.
‘But I know there is more to do,’ she said. ‘I know that the cost of living is still bearing down on family finances, I know that people feel frustrated at the pace of change, or angry at the unfairness in our economy.
‘I have to be honest that the damage done from austerity, a chaotic Brexit and the pandemic were worse than we thought.
‘But I’m not going to duck those challenges, and nor will I accept that our past must define our future. It doesn’t have to.’
She described the Budget as being for ‘the British people’ and said the Government would work with them to ‘build a fairer, stronger and more secure Britain’.
Confused about this week's Budget?
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Sort: Newest first Oldest first November 26, 2025 7:15 am Watch: Chancellor reassures the public ahead of her Budget Isobel FrodshamTo view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video
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Previous Page Next Page November 26, 2025 7:00 am What you SHOULDN’T know that’s coming in the Budget Isobel FrodshamOur senior political reporter, Craig Munro, breaks out what you shouldn’t know that’s happening today. Watch it below here.
@alrightgovNovember 26, 2025 6:43 am Budget recap: What’s been announced so far Isobel FrodshamHere are a few things you shouldn’t know about what Rachel Reeves will announce at the Budget #budget2025 #rachelreeves #ukpolitics #uknews #politics
♬ original sound – Alright, Gov?
There’s been a flurry of activity from the Treasury and other outlets over the last few days. On Budget eve, here’s what was unveiled:
- The national living wage is set to go up 4.1% next year, marking a £900 annual pay rise for millions of workers. From April 2026 the living wage will rise by 4.1% to £12.71 an hour for workers aged 21 and over, helping about 2.4million people. And the national minimum wage, which is for 18 to 20-year-olds, will increase by 8.5% to £10.85, an annual bump of £1,500.
- Wes Streeting confirmed yesterday the rollout of the much-talked about milkshake tax in a bid to tackle obesity – here’s everything you need to know about it
- A government-backed savings account, called the Help to Save scheme, is being set up. It offers a 50% bonus on the amount of cash users stash away, and will open fully in 2028 after previously only being set to run until April 2027
- Rachel Reeves will reportedly let Mayor of London Sadiq Khan impose a ‘tourist tax’ on overnight stays in the capital
- Motability Operations, the organisation which runs the Motability scheme, said luxury cars such as Mercedes and BMW will be scrapped from the scheme, and instead cars from British makers will be prioritised instead
Rachel Reeves, the Chancellor of the Exchequer, has said she will make ‘necessary choices’ for the economy.
She will reveal the balance sheet at 12.30pm tomorrow – here’s what to expect based on reports so far:
- Rates for income tax, which is paid on money you earn, will not be raised.
- The minimum wage will be increased.
- Scrapping or limiting the two-child benefit cap, which means parents can only claim welfare for their first two children.
- Cutting the 5% VAT rate on energy, which would bring electricity and gas bills down.
- Capping the amount of money workers can pay into their pensions under ‘salary sacrifice’ schemes, without paying National Insurance at £2,000.
- A new tax on high-value homes in England.
- Slashing the amount of money that can be saved in cash Individual Savings Accounts (Isas) from £20,000 to £12,000.
- Landlords could pay more National Insurance.
- Tying a loophole that allows overseas sellers to send packages less than £135 to the UK without paying import duties.
- A new tax on electric vehicles, charging EV drivers about 3p per mile.
- The so-called milkshake tax, which will see the pre-existing sugar tax apply to the beverage as well as lattes.
- Limiting the tax break that people can get when buying a bicycle through the Cycle to Work scheme.
Rachel Reeves acknowledged people are ‘angry at unfairness’ in the British economy ahead of unveiling her second Budget on Wednesday.
In a filmed address ahead of the Budget, the Chancellor said the Government had started to see results in the past year with ‘wages rising faster than inflation, hospital waiting lists coming down, and our economy growing faster and stronger than people expected’.
‘But I know there is more to do,’ she said. ‘I know that the cost of living is still bearing down on family finances, I know that people feel frustrated at the pace of change, or angry at the unfairness in our economy.
‘I have to be honest that the damage done from austerity, a chaotic Brexit and the pandemic were worse than we thought.
‘But I’m not going to duck those challenges, and nor will I accept that our past must define our future. It doesn’t have to.’
The Chancellor insisted she will use her Budget to introduce measures to tackle the cost-of-living crisis, as the beleaguered Government hopes to keep backbench Labour MPs on side amid an expected series of tax rises.
November 26, 2025 6:21 am Good morning, welcome to Metro’s Autumn Budget blog Isobel FrodshamGood morning – and we’re back! We’ll be bringing you the latest coverage of the Budget as it is unveiled in the House of Commons in Westminster later on today.
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