On the eve of one of the most closely watched Budgets in recent memory, Chancellor Rachel Reeves has called on Labour MPs to stand united behind what she describes as a “fair and progressive” economic package, even as internal party debates and public scrutiny intensify. Addressing the Parliamentary Labour Party on Monday, November 24, 2025, Reeves made her case for collective discipline, emphasizing that the Budget must be backed in its entirety to deliver on the government’s economic agenda and maintain credibility with voters.
“Politics is a team sport,” Reeves told MPs in a meeting that, according to BBC News, was tense after weeks of leadership speculation. She acknowledged that not every measure would be universally popular, but insisted, “When you look at the distributional analysis you’ll see this is a Labour Budget, a progressive Budget, a Budget I’m proud of.” She added, “You might like 95% of it and dislike 5%, but we have to deliver this together.”
The Chancellor’s appeal comes at a pivotal moment for the Labour government. The Budget, scheduled for delivery on Wednesday, November 27, follows weeks of rumor-driven reporting and speculation. Reeves made it clear that while tax rises would be “kept to a minimum,” the government’s priorities remain cutting the cost of living, reducing NHS waiting lists, and lowering the cost of government debt. “I am determined to keep the contributions people make as low as possible,” she said, arguing that support for household budgets would, in turn, boost business activity.
Yet, not all Labour MPs are singing from the same hymn sheet. On Tuesday morning, three Labour MPs joined a protest outside Parliament, standing alongside Green Party leader Zack Polanski and calling for a wealth tax. Neil Duncan-Jordan, one of the MPs, told reporters, “This is about an issue, not about what label people are wearing. My view is we should be taxing those with the broadest shoulders – they should be carrying the heaviest burden.” Their public dissent highlights ongoing debates within the party over how best to raise revenue and address inequality.
Internal criticism of Reeves has grown over the past year, with some MPs questioning her judgement after forced U-turns on policies such as cutting the winter fuel payment. Concerns also surfaced about the possibility of breaking Labour’s election manifesto promise by raising income tax rates. However, Reeves has since ruled out an income tax hike, a move welcomed by many but criticized by others who argue that the government needs bolder action to close a public finance gap estimated at around £20 billion.
Instead, Reeves is expected to rely on a mix of smaller tax measures. These may include a high-value property levy, extending the freeze on income tax and National Insurance thresholds for two more years, a pay-per-mile charge for electric vehicles, tighter rules on salary sacrifice schemes, and new taxes on gaming companies. Other possible revenue-raising options under consideration are limiting pension contribution tax breaks (expected to raise about £2 billion), reducing the tax break for purchasing bicycles through the Cycle to Work scheme, and cutting the tax-free allowance on cash ISAs from £20,000 to £12,000.
Despite the fiscal challenges, Reeves has highlighted Labour’s achievements since taking office. According to The Guardian, she pointed to increases in the national living wage, protection of the triple lock for pensions, expansion of free childcare, free breakfast clubs in primary schools, and the extension of free school meals to an additional half a million children. Recent freezes on prescription charges and rail fares were also flagged as evidence of the government’s early progress.
Reeves has suggested scrapping the two-child benefit cap, which currently limits benefits for families with more than two children born after April 6, 2017. This move, if implemented, would mark a significant shift in social policy and is likely to be welcomed by many on the party’s left. Meanwhile, the triple lock on state pensions is expected to remain, and the living wage is likely to rise, offering some reassurance to pensioners and low-income workers.
But the Budget is not without its critics. Conservative shadow chancellor Mel Stride expressed concern that Reeves’s approach would shift the tax burden onto “hard-pressed hard-working people being transferred into the benefits system.” Rain Newton-Smith, head of the Confederation of British Industry, urged Reeves not to inflict “death by a thousand taxes” on businesses, advocating instead for “the courage to take two tough decisions rather than 20 easier ones.” Liberal Democrat Treasury spokesperson Daisy Cooper accused the government of “rank hypocrisy” over its potential tax plans, noting, “Rachel Reeves once accused the Conservatives of ‘picking the pockets’ of working people by freezing tax thresholds – now Labour plans to do exactly the same.”
Reeves has defended her approach, arguing that creating up to £20 billion in fiscal headroom is essential for meeting her self-imposed rules on debt and borrowing. She has also been quick to address speculation about her political future, vowing to remain as Chancellor and thanking colleagues for their support amid what she described as misogynistic attacks from sections of the media. “I’ll show the media, I’ll show the Tories — I will not let them beat me,” she declared, drawing cheers from supporters.
Adding to the Budget’s complexity, ministers have announced that pre-packaged milkshakes and lattes will be subject to the sugar tax, a move aimed at improving public health and raising additional revenue. The Budget will also be accompanied by a report from the Office for Budget Responsibility, which is expected to confirm that the UK’s productivity downgrade stems from Brexit and Conservative-era austerity, rather than the policies of the current Labour government.
Reeves summed up her vision for the Budget in a message to MPs: “On Wednesday, this will be a fair Budget… one that delivers strong foundations, secures our future and delivers on our promise of change.” However, as the deadline approaches, the tension within Labour ranks remains palpable. Some MPs described Reeves as “strong and honest,” while others said she sounded “desperate,” reflecting the high stakes and divergent views within the party.
With the Budget set to be unveiled, all eyes will be on whether Reeves can hold her party together and convince the public that her “package, not a pick-and-mix” approach will deliver the economic transformation Labour has promised. The choices made in this Budget could shape the government’s fortunes—and the country’s direction—for years to come.
