Summary
The United Kingdom is preparing to announce its 2025 budget amid financial challenges and public dissatisfaction. UK Chancellor Rachel Reeves faces difficult choices to fix public finances while keeping promises to avoid new tax increases. Economists describe her position as an "impossible trilemma" due to limited room for budget adjustments.
Key Facts
- The UK is revealing its 2025 budget against financial troubles and public discontent.
- Chancellor Rachel Reeves must balance public finances without raising major taxes.
- The UK's economy has grown slowly, with GDP increasing only 1.7% from late 2019 to early 2024, which is slow compared to other major economies.
- UK borrowing costs have reached their highest level in 30 years.
- In October, the UK borrowed £17.4 billion to cover its expenses.
- Reeves aims to balance day-to-day spending and reduce national debt by 2029-30 without new major tax increases.
- In the previous budget, Reeves introduced significant tax hikes, raising £40 billion.
- Economists estimate that Reeves will need to find £41.2 billion more to meet her financial targets.
