Budget 2025: Reeves Drops Economic Growth Reference

Published: 25 November 2025. The English Chronicle Desk. The English Chronicle Online

Chancellor Rachel Reeves has notably omitted any reference to economic growth ahead of her critical Budget announcement on Wednesday. Since taking office 18 months ago, Reeves emphasised economic growth as her “number one mission,” but discussion of it was absent during her address to MPs on Monday evening.

Instead, she outlined three priorities for the Budget: cutting the cost of living, reducing NHS waiting lists, and lowering the cost of public debt. The shift comes after the Office for Budget Responsibility reportedly downgraded economic growth forecasts through 2029, creating a significant funding shortfall in the government’s plans.

Reeves is also set to introduce a new “mansion tax,” targeting thousands of Britain’s most expensive properties across council tax bands F, G, and H. Reports suggest that around 100,000 properties will be affected by the new levy, designed to help fill the spending gap in the Budget.

Additional wealth taxes are expected as part of the Chancellor’s strategy, including a profits tax on gambling companies—previously proposed by former Prime Minister Gordon Brown—and a levy on bank profits. Analysts predict these measures will be crucial in funding public services while balancing the constraints of downgraded growth forecasts.

The Budget is widely regarded as “make-or-break” for Reeves, whose fiscal strategy has faced scrutiny due to inflationary pressures, rising living costs, and mounting public debt. Observers will be watching closely to see how her measures impact economic recovery, public sentiment, and the government’s broader fiscal credibility.

With the OBR’s downgraded growth forecasts looming, the Chancellor’s emphasis on immediate priorities rather than long-term growth reflects both political pragmatism and the stark financial realities facing the Treasury. The upcoming Budget is expected to offer a mix of new taxes, spending adjustments, and policy initiatives aimed at stabilising the economy while addressing pressing societal needs.