Tax & Spend

Reeves Raises UK Taxes by £26 Billion in Day of Budget Chaos

WATCH: Reeves expanded her key fiscal buffer to £22 billion, the OBR said in analysis released ahead of the budget in error. Anna Edwards reports.Source: Bloomberg

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By Philip Aldrick and Joe Mayes

November 26, 2025 at 12:02 PM UTC

Updated on

November 26, 2025 at 4:21 PM UTC

Chancellor of the Exchequer Rachel Reeves announced £26 billion ($34 billion) of tax increases, in a budget that sought to balance the demands of both bond traders and restive Labour backbenchers.

Early reactions seemed to suggest she’d pulled that off: yields on UK gilts fell while left-wing MPs praised the budget’s redistribution of the tax burden.