Chancellor Rachel Reeves is facing intense scrutiny this morning as she defends her budget decisions against criticism from rightwing newspapers and leading economic think tanks.
Defending the Budget
The chancellor has been speaking to broadcasters to justify her financial plans, which received a relatively positive response from Labour MPs and financial markets. However, the budget faces strong opposition from conservative media outlets.
Today marks a crucial moment as two of Britain's most respected economic research organisations - the Institute for Fiscal Studies and the Resolution Foundation - publish their detailed assessments of the budget measures.
Tax Pledge Controversy
Reeves has confronted difficult questions about whether Labour has broken its manifesto commitment on taxes, which she firmly denies. However, the Resolution Foundation analysis suggests that working people would actually be better off if the pledge had been broken.
The think tank explains that the manifesto tax promise has ultimately cost working people. Rather than increasing income tax rates as previously hinted, the chancellor opted to freeze personal tax thresholds for an additional three years.
According to their analysis, raising all income tax rates by 1p would have been less costly than freezing thresholds for anyone earning below £35,000. The Resolution Foundation states that all but the top 10% of earners are worse off because of the decision to freeze thresholds rather than increase rates.
Today's Key Events
The political and economic scrutiny continues throughout the day with several important events:
9am: The Resolution Foundation holds a press conference to discuss its budget analysis
9.30am: The Office for National Statistics publishes net migration figures for the year ending June 2025, while the Home Office releases asylum statistics for the year ending September 2025
10.30am: The Institute for Fiscal Studies conducts its post-budget briefing
11.30am: Downing Street holds its regular lobby briefing
Meanwhile, Labour leader Keir Starmer is conducting visits in Warwickshire during the morning, followed by a scheduled visit to a London synagogue in the afternoon.
The chancellor's defence comes as Graeme Wearden's business live blog captures some of her key arguments, including her acknowledgment that working people will pay 'a bit more' through the income tax threshold freeze.
