Chancellor Rachel Reeves is set to deliver one of the most significant moments of this parliament, as she presents Labour's second Budget on November 26. This financial statement arrives during a period of economic turbulence and growing internal party tensions, making it a defining moment for both the government and the Chancellor herself.
The Budget: A Make-or-Break Moment
Amidst speculation and political pressure, the Treasury has been considering a suite of bold measures. Following better-than-expected forecasts from the Office for Budget Responsibility (OBR), plans to break the manifesto commitment on income tax are believed to have been shelved. Instead, the November 26 Budget is expected to feature a bombshell announcement: an end to the controversial two-child benefit cap.
Other key measures under consideration include significant hikes to gambling taxes and the introduction of a new £2,000 yearly cap on pension savings through salary sacrifice. The Treasury is also looking at empowering local leaders with a tourist tax for overnight stays and a boost to the minimum wage, potentially raising it to around £12.70 from April 2026—an increase of approximately 4%. Furthermore, the government is exploring the elimination of the 5% VAT currently applied to energy bills.
A Political Career Forged in Persistence
Rachel Reeves' path to the despatch box was not straightforward. She was not elected as an MP until her third attempt, finally securing the Leeds West constituency in 2010 with a majority of just over 7,000. After boundary changes, she was re-elected for Leeds West and Pudsey with an increased majority of 12,392.
Her rise within the Labour Party was rapid. Just five months after entering Parliament, she was promoted to Shadow Minister for Work and Pensions. She later served as Shadow Chief Secretary to the Treasury and Shadow Secretary for Work and Pensions under Ed Miliband. After a period on the backbenches during Jeremy Corbyn's leadership, she was appointed Shadow Chancellor in 2021 by Keir Starmer, a role that led to her historic appointment as Britain's first female Chancellor.
The past year, however, has presented challenges. She faced criticism for accepting free tickets to a Sabrina Carpenter concert and admitted to an "inadvertent mistake" after failing to obtain a rental licence for her family home. A visibly emotional moment in the Commons during a tense PMQs also drew attention, though it was attributed to a personal matter.
The Person Behind the Policies
Before entering politics, Reeves built a substantial career in economics. She studied PPE at Oxford University—a course also taken by Jeremy Hunt and Liz Truss—and earned a master's in economics from the London School of Economics. She worked as an economist at the Bank of England and later for the Bank of Scotland, even turning down a job at Goldman Sachs.
One of her most defining traits is her prowess in chess. Taught by her father at age seven, he never let her win, instilling a fierce competitive spirit. She honed this talent to become the British girls under-14 chess champion. She has said the game taught her to think strategically and anticipate an opponent's moves—skills undoubtedly crucial for navigating the complexities of the Treasury.
Family is central to her life. She and her sister, Ellie, made history as the first sisters to sit around the Cabinet table. Born in southeast London to teacher parents, she attended a comprehensive school in Beckenham. She is now married to senior civil servant Nick Joicey, and the couple have two children whom they fiercely protect from the public spotlight. Away from numbers and policy, her colleagues describe her as great fun, with a taste for Beyoncé and Ronnie Scott's jazz club.
As she steps up to the despatch box, the shadow of her mentor, the late Alistair Darling, looms large. Reeves has spoken of her hope that he would be proud of her work as the next Labour Chancellor. With the nation watching, this Budget will be the ultimate test of the strategic skills she first learned across a chessboard.
