EXPERTS have accused Chancellor Rachel Reeves and Labour of “enjoying gaslighting the British public” as she gave a pre-Budget press conference amid fears she will raise taxes.
The Office for Budget Responsibility (OBR) is expected to downgrade its productivity forecasts for the UK this month.
Reeves said she will make the “necessary choices” for the economy in the Budget on November 26, adding “the world has thrown even more challenges our way” in the last 12 months.
She is expected to announce tax rises in the Budget despite Labour pledging not to hike income tax, VAT or National Insurance in its general election manifesto.
Rachel Reeves also criticised the OBR, adding: “The Office for Budget Responsibility will make their forecasts at the end of this month, but let’s be clear about what forecasts are: They are not visions of the future, they are a look in the rear-view mirror.
“The OBR rightly make their predictions based on the data that has gone before, but I do not believe that our past has to determine our future or that a stuttering economy, poor productivity and falling living standards is somehow Britain’s destiny. A brighter future is within our grasp.”
Experts slammed the speech.
David Belle, Founder and Trader at Fink Money, said: “This government enjoys gaslighting the British public. Rachel Reeves is suggesting the world has faced more economic headwinds at the same time that US growth has been revised up from 3.2% to 3.8%. Also, why do we have the largest differential ever on inflation versus the G20 median?
“And the same therefore for our bond yield pricing? In truth, this economic collapse started when Labour got into power in July 2024. It is reasonable to suggest they are entirely incompetent at this stage due to the fact their policies do not rhyme with what they say on growth.
“What’s also now unfathomable is how the OBR forecasts that were once gospel are now being rubbished. The hypocrisy stemming from this talentless and grey Government is astounding.”
Darryl Dhoffer, Founder at The Mortgage Geezer, said it points to tax rises.
He continued: “Chancellor Rachel Reeves delivers a speech confirming the inevitability of tax rises by pointedly failing to reaffirm Labour’s manifesto pledge against hiking income tax, VAT or NI.
“She champions an ‘iron clad’ commitment to fiscal rules, a move seen as pleasing markets but demonstrating she is deluded about the UK’s economic flexibility; she blames past governments’ austerity and Brexit while refusing necessary structural changes.
“Her stated priorities—cutting debt, fixing the NHS, easing living costs—will be funded by breaking electoral promises, with signals suggesting a tax burden shift toward higher earners or wealth. This path sacrifices growth for stability dictated by bond markets, proving the government is deluded about its capacity to deliver renewal without political pain.”
Riz Malik, Director at R3 Wealth, said we are in for a wild few weeks.
He added: “Rachel is trying to get ahead of the news cycle here as she knows the OBR report will be damning. This is damage limitation and nothing less. We really are in for a rollercoaster for the next few weeks. Remember Rachel has two masters: the UK public and the bond market.”
Stephen Perkins, Managing Director at Yellow Brick Mortgages, said Reeves is just blaming others.
He continued: “Politicians love the OBR reports when they validate their plans, but when they highlight their errors, they say they do not hold value. This government managed to double a fiscal shortfall despite the last Budget being designed to remove it.
“The Chancellor seems ready to blame any historic event for the unpopular decisions she is about to make, rather than admit that she damaged the economy with her last Budget and the government has not managed to make any savings on government spending.”
Ben Perks, Managing Director at Orchard Financial Advisers, said the speech is a red flag for the country.
He added: “The speech by Rachel Reeves this morning was reminiscent of a safety briefing before a bungee jump. She’s basically told the nation, in advance, to strap in and hope for the best.
“Tax rises to working people are inevitable and it seems clear that tough times are ahead in 2026. Eyes will turn to the markets to see if today’s speech sparks a reaction and an increase in rates for mortgage borrowers.”
Rohit Kohli, Director at The Mortgage Stop, agreed, adding: “Calling a pre-Budget press conference nearly a month early smacks of panic, not planning. Rachel Reeves spent the morning shifting blame for the state of the economy, but many of the problems are the result of her own decisions.
“She talks about ‘necessary choices’ while ignoring the fact that raising National Insurance and ditching benefit reform plans were her choices – and they’ve damaged confidence and growth. You can only blame Brexit, Covid or global events for so long. Voters and markets can see through the excuses. This speech feels less about fixing the economy and more about managing the extreme fallout at the end of November. Merry Christmas everyone.”
Sam Kirk, Managing Director at J-Flex Rubber Products, said Reeves will ignore her manifesto.
He continued: “Since taking office, this government’s been quicker to point fingers than to deliver results. Instead of focusing on growth and competence, ministers have spent their time blaming predecessors, Covid, Brexit and even letting agents, paving the way for Rachel Reeves to completely ignore manifesto promises and raise taxes in her upcoming budget. For a party that promised stability and integrity, they’re off to a very shaky start.”
Anita Wright, Chartered Financial Planner at Ribble Wealth Management, said the speech by Rachel Reeves was “farce”.
She added: “It’s getting painfully close to farce now. The same Chancellor who, at the last Budget, apologised for a huge £40 billion tax rise assuring us it was necessary medicine and a one-off, has started tip-toeing back up the path to say, actually, we’ll need to tax you even more this time.
“And of course there’s a ready-made list of culprits: Brexit, Liz Truss, tariffs, global pressures — pick your villain of the week. It isn’t a good look. How exactly are people meant to have any confidence or trust in someone who says that and then does the opposite a few months later?
“We are told not to worry because she’ll ‘spend on public services’. And then, with the other hand, we get the solemn promise to ‘get national debt down.’ By what measure? Because in the real world, debt is still rising £20 billion a year, with record borrowing in June and again in September (outside the Covid blip). Around 48% of the monthly deficit is now swallowed by debt-servicing costs. It’s embarrassing.”
Samuel Mather-Holgate, Independent Financial Adviser at Mather and Murray Financial, said he expected income tax to rise.
He continued: “This will be the promise-breaking Budget that the people will remember like Nick Clegg’s coalition chaos. Income tax will likely rise, unless the Bank of England cuts rates and eases the pressure on the government borrowing costs. This Budget really is in the hands of Andrew Bailey, democracy in action.
Antonia Medlicott, Founder & MD at Investing Insiders, said the speech was an attempt to soften the blow on Budget day.
She added: “This morning’s surprise speech leaves me in little doubt that Rachel Reeves is planning to break her manifesto promise not to increase income tax or national insurance contributions.
“I can only imagine this is an attempt to give markets time to price in the change and avoid chaos on Budget day. But all this does for ordinary people, trying to balance their household budgets and plan for the future is to add to the greater uncertainty, and greater frustration.”
