Rachel Reeves gives major Budget update as she sets path for mega tax rises - before blaming the Tories

In a speech from Downing Street, the Chancellor said she will "make the choices necessary to deliver strong foundations for our economy" for "years to come."

She said: "My opponents will tell you that they could do more. Reform promised savings from our public services.

"And yet in Kent County Council, and councils they run across Britain, apparently they can’t find a single penny and instead plan to increase council tax on more than two million people."

Reacting to the dig, Reform UK's deputy leader and Boston and Skegness MP Richard Tice said: "Rachel Reeves has today confirmed what we all knew, she’s going to hammer working people with even more tax rises.

"Instead of cutting waste and spending, deregulating and optimising for growth, we are just getting more of the same.

"Only Reform is serious about building an economy that unleashes growth, backs British business and helps those who set their alarm clocks every morning."

But it was Ms Reeves who was unable to rule out future tax rises in this month’s budget, insisting she must “deal with the world as I find it, not the world as I might wish it to be”.

“Each of us must do our bit," she continued. “If we have to build the future of Britain together, we will all have to contribute to that effort,” seemingly pointing towards a rise in taxation, which would be against Labour's manifesto.

Ms Reeves then cited the Conservatives' "years of economic mismanagement" that has "limited our country's potential," before claiming previous administrations prioritised "political convenience" over "economic imperative".

The Chancellor of the Exchequer then touched on the "instability and indecision" after that and also the consequences of what she described as "a rushed and ill-conceived Brexit".

"This isn't about re-litigating old choices - it's about being honest with the people, about the consequences that those choices have had," she continued.

Ms Reeves then added that the Conservative's plan for £47billion in cuts would have "devastating consequences for our public services".

This prompted a strong response from Tory leader Kemi Badenoch, who said: “The Chancellor’s speech was one long waffle bomb, a laundry list of excuses.

“She blamed everybody else for her own choices, her own decisions, her own failures.”

The Leader of the Opposition then poignantly added: "They have given up trying to get the Government to live within its means, and they have given up on not raising tax."

Conservative shadow chancellor Sir Mel Stride also strongly refuted Ms Reeves' claims and took to social media to express his frustrations.

Rachel Reeves has made an emergency speech because she is panicking about the speculation she has fuelled. But all she’s done is confirm the fears of households and businesses - that tax rises are coming.

The Chancellor claims she fixed the public finances last year. If that was… https://t.co/BPuGFgvMpB

— Mel Stride (@MelJStride) November 4, 2025

"The chancellor claims she fixed the public finances last year," he wrote. "If that was true, she would not be rolling the pitch for more tax rises and broken promises.

"The reality is, she fiddled the fiscal rules so she could borrow hundreds of billions more.

"Every time the numbers don't add up, Reeves blames someone else. But this is about choices - and she made all the wrong ones.

"If Rachel Reeves had the backbone to get control of government spending - including the welfare bill - she wouldn't need to raise taxes."