Chancellor Rachel Reeves has made a direct appeal to Labour MPs to support her crucial budget, describing it as a comprehensive package that cannot be cherry-picked while promising it will deliver fairness across the board.
In a private meeting with the parliamentary party on Monday night, Reeves addressed a potentially fractious group following weeks of leadership speculation, emphasising that "politics is a team sport" and urging unity ahead of Wednesday's announcement.
A Budget Package, Not a Sweet Selection
The Chancellor employed vivid confectionery analogy to make her point clear, telling MPs: "This budget would be 'a package not a pick and mix … you can't say I like the cola bottles but not the fruit salad.'" Despite acknowledging that some measures might prove unpopular, she expressed confidence that Labour MPs would support at least 95% of the budget's contents.
Reeves sought to reassure colleagues about the budget's progressive credentials, stating: "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 promised MPs there would be appealing measures they could champion in their constituencies.
Economic Challenges and Government Priorities
The Chancellor faces significant economic headwinds, with expectations that she will reveal downgraded UK growth forecasts for each of the next five years - a concerning development for a government that placed economic growth at the heart of its election campaign.
During the meeting, Reeves outlined three key priorities that would shape the budget: cutting the cost of living, reducing NHS waiting lists, and managing the cost of government debt. She emphasised that controlling debt costs was particularly crucial as it would free up resources for essential public services by lowering borrowing costs.
Reeves highlighted several government achievements since taking office, including: increasing the national living wage, protecting the pension triple lock, properly funding free childcare commitments, rolling out free breakfast clubs in primary schools, and extending free school meals to an additional 500,000 children.
Fiscal Measures and Political Resolve
The Treasury is seeking to create approximately £20 billion in fiscal headroom to meet its fiscal rules, having ruled out anticipated income tax increases. Instead, the government is expected to implement various alternative measures including a potential new property levy on high-value homes, extending the income tax threshold freeze for two additional years, introducing a pay-per-mile scheme for electric vehicles, and reducing the generosity of salary sacrifice schemes.
Reeves expressed frustration with pre-budget media speculation, describing it as "incredibly destabilising" and comparing it to last year's pension reform rumours that prompted premature lump-sum withdrawals before reforms were implemented.
In a show of political determination, the Chancellor told MPs: "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." The declaration was met with cheers from supporters in the room.
According to Reeves, the Office for Budget Responsibility's forthcoming report will attribute Britain's productivity downgrade to Brexit and Conservative austerity measures, explicitly absolving the current government's policies from responsibility.
The Chancellor concluded with a promise to deliver "a fair budget that delivers strong foundations, secures our future and delivers on our promise of change" when she addresses the nation on Wednesday.
