Reeves Urges Labour Unity Ahead of Crucial Budget as Political Pressure Mounts

With growth forecasts downgraded and tax tensions rising, the Chancellor calls for discipline — but warns MPs they “won’t like everything”

Chancellor Rachel Reeves has called on Labour MPs to unite ahead of her highly anticipated 2025 Budget, acknowledging that while they may support “95%” of the measures, some decisions will be politically difficult. Speaking to the Parliamentary Labour Party, Reeves described politics as a “team sport”, stressing that Wednesday’s Budget will be built on fairness, stability and long-term growth.

Her rallying call comes as Labour faces declining poll ratings and growing frustration among backbenchers over the prospect of further tax rises.

Reeves Defiant: “I Will Not Let Them Beat Me”

In a forceful address, Reeves vowed to withstand media criticism and Conservative attacks, saying:

“I’ll show the media, I’ll show the Tories — I will not let them beat me. I’ll be there on Wednesday, next year, and the year after that.”

Reports suggest the room broke into cheers, signalling strong support for her determination to steady the economy during a moment of fiscal difficulty.

Reeves reiterated that the Budget must be viewed as a single package rather than a “pick ’n’ mix”, urging MPs to back the government as it pursues three core priorities:

• Cutting the cost of living
• Reducing NHS waiting lists
• Lowering the cost of servicing government debt, with £1 in every £10 currently spent on interest payments

Growth Downgrade Piles on the Pressure

Sky News revealed that the Office for Budget Responsibility (OBR) will downgrade the UK’s growth forecasts every year until 2029 — an unwelcome development for a government that made growth its flagship priority.

Deputy political editor Sam Coates noted that “once again, growth will be lower after this Budget than before,” raising concerns about the government’s ability to deliver its economic agenda.

However, there is at least one silver lining: Reeves is expected to have more fiscal headroom than originally anticipated, allowing ministers to argue that the UK is no longer stuck in an “economic doom loop”.

Tories Accuse Labour of ‘Killing Growth’

Conservative leader Kemi Badenoch issued a scathing assessment of Reeves’ approach, claiming she is “doing a terrible job” and accusing the government of imposing “job-killing measures”.

25 11 2025 Budget 2025 Rachel R…

Badenoch urged the Chancellor to abandon the Employment Rights Bill — which bans exploitative zero-hours contracts — arguing it would damage business flexibility and drag the UK “back to the 1970s”.

Business leaders attending the CBI conference have also expressed concern about rising taxes and tightening regulations, calling for a clearer pro-growth strategy.

Key Budget Measures Expected on Wednesday

A number of policies have already been signalled ahead of the announcement:

• Income tax thresholds likely to be frozen again
• Two-child benefit cap expected to be lifted, at a cost of around £3bn per year
• Rail fares in England to be frozen for the first time since the 1990s
• State pension to rise above inflation, delivering an extra £550 annually to 13 million pensioners

Meanwhile, the Green Party is pushing for a 1% wealth tax on assets over £10m and a 2% rate over £1bn, alongside aligning capital gains tax with income tax.

A High-Stakes Budget for Labour’s Economic Credibility

Wednesday’s Budget is set to be one of the most scrutinised in recent years. With economic growth slowing, political tensions rising and the Chancellor preparing to unveil tough fiscal decisions, Reeves is under pressure to reassure both markets and the public that Labour can deliver stability and long-term prosperity.

Sources: (SKYMoney.com, BBC.co.uk)