Chancellor Rachel Reeves has made a direct appeal to Labour MPs to support what she describes as a "make-or-break" budget, acknowledging that not all measures will be popular but insisting the overall package will be fair and progressive.
Team Sport Politics
Speaking to a parliamentary party meeting on Monday night, Reeves emphasised that "politics is a team sport" and urged unity ahead of Wednesday's crucial budget announcement. The chancellor addressed MPs during a period of leadership speculation, seeking to rally support for what she called a "Labour budget" that would deliver on the party's core promises.
In a colourful analogy that resonated through Westminster, Reeves told MPs: "The budget would be 'a package not a pick and mix … you can't say I like the cola bottles but not the fruit salad.'" She expressed confidence that Labour MPs would support at least 95% of the measures contained in the budget.
Budget Priorities and Economic Reality
The chancellor outlined three key priorities that would shape Wednesday's announcement: cutting the cost of living, reducing NHS waiting lists, and managing the cost of debt. She emphasised that controlling government borrowing costs was essential to free up additional funding for public services.
Reeves revealed concerning economic forecasts, stating that UK growth projections have been downgraded for each of the next five years, despite the government identifying economic growth as its primary mission during the last election campaign.
She defended the government's record to date, highlighting several achievements:
- Increasing the national living wage and minimum wage
- Protecting the triple lock with increases implemented last year and scheduled for next April
- Properly funding free childcare commitments
- Rolling out free breakfast clubs in primary schools
- Extending free school meals to an additional 500,000 children
Fiscal Challenges and Revenue Measures
The Treasury is seeking to generate approximately £20 billion in additional headroom to meet fiscal rules after rejecting potential income tax increases. Instead, the government is considering alternative revenue sources including:
- A new property levy on high-value homes
- Extending the income tax threshold freeze for two additional years
- Implementing a pay-per-mile scheme for electric vehicles
- Reducing the generosity of salary sacrifice schemes
Reeves criticised what she called "incredibly destabilising" budget speculation in media reports, comparing it to last year's pension reform rumours that prompted people to withdraw lump sums prematurely before reforms were implemented.
The chancellor also addressed personal challenges, thanking MPs for their support in fighting media misogyny and making a firm commitment to her role: "I'll show the media, I'll show the Tories, I will not let them beat me, I'll be there on Wednesday, I'll be there next year and I'll be back the year after that."
According to Reeves, the Office for Budget Responsibility's report will attribute Britain's productivity downgrade to Brexit and Conservative austerity measures, explicitly clearing the current government's policies of responsibility.
The budget is expected to include several popular spending measures, potentially including lifting the two-child benefit cap and actions to reduce energy bills, though the chancellor stressed the importance of viewing the budget as a complete package rather than selecting individual elements.
