Chancellor Faces Scrutiny Over Budget Decisions
Chancellor Rachel Reeves has been vigorously defending her budget this morning, despite facing criticism from both rightwing newspapers and leading economic thinktanks. While the budget received a relatively positive reception from Labour MPs and financial markets - two groups whose interests rarely align - it is now undergoing detailed assessment from experts who have raised significant concerns.
The Chancellor has been particularly pressed on questions regarding Labour's manifesto promise on tax, which she insists remains unbroken. However, new analysis suggests this commitment may have come at a cost to working people.
Thinktanks Reveal Budget's Hidden Impact
The Resolution Foundation, one of Britain's foremost authorities on public spending, has delivered a damning assessment of the budget's tax measures. Their analysis reveals that the decision to freeze personal tax thresholds for three additional years will actually prove more costly for the majority of workers than if the government had broken its manifesto pledge and increased income tax rates.
According to their findings, raising all income tax rates by 1p would have been less financially damaging than the threshold freeze for anyone earning below £35,000. The thinktank states clearly that all but the top 10% of earners will be worse off because the Chancellor opted for threshold freezes rather than rate increases, despite both approaches raising similar amounts of revenue.
Reeves has acknowledged that working people will pay "a bit more" through the income tax threshold freeze, but maintains that her approach represents the fairest way forward.
Today's Key Developments and Schedule
The political and economic scrutiny continues throughout the day with several crucial events:
9am: The Resolution Foundation holds a press conference to discuss its comprehensive budget analysis in greater detail.
9.30am: The Office for National Statistics publishes net migration figures for the year ending June 2025, while the Home Office separately releases asylum statistics for the year ending September 2025.
10.30am: The Institute for Fiscal Studies conducts its post-budget briefing, providing another expert perspective on the government's financial plans.
11.30am: Downing Street holds its regular lobby briefing for journalists.
Meanwhile, Prime Minister Keir Starmer is conducting a visit in Warwickshire during the morning, followed by an afternoon engagement at a synagogue in London.
The budget debate continues to unfold, with the Chancellor's decisions facing ongoing examination from both political opponents and independent economic experts concerned about the impact on ordinary taxpayers.
