Tuesday, November 4, 2025

The chancellor and prime minister decided about a week ago that they would have to put up income tax in the Budget. Their next decision was how to manage this momentous breach of a manifesto promise. 

Their plan was that Rachel Reeves would deliver what is officially called the "Chancellor's Scene Setter speech ahead of Budget 2025" (full text here), to set out why "each of us" should "do our bit" to help pull the country's finances around. 

As Sean O'Grady writes, this was partly aimed at the markets, who took it well: the pound fell because the markets expect interest rates to fall, making it cheaper for the government to borrow. 

I suspect that it will be less successful with Reeves's other audience, the voters. I wrote that she seemed to blame everyone but herself for the failure of her gamble that last year's tax rise would be enough. 

Simon Walters writes that things did not end well for Denis Healey, the last chancellor to raise the basic rate of income tax.  

Tony Blair wore the same what for every Prime Minister's Questions of his premiership?

Answer at the bottom of today's email 

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QUOTATION OF THE DAY

If we are to build the future of Britain together, we will all have to contribute to that effort – each of us must do our bit

Rachel Reeves, chancellor of the Exchequer

Quiz answer: The same pair of Church's shoes

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