UK Finance Minister Rachel Reeves Says November Budget Will Tackle Global Challenges

London: U.K. Chancellor Rachel Reeves said her upcoming November budget will directly address global and domestic economic challenges, while maintaining the government’s commitment to fiscal discipline.

Speaking to CNBC at the IMF Annual Meeting in Washington, Reeves cited the Russia-Ukraine conflict, Middle East tensions, and rising trade barriers as key risks weighing on the U.K. economy.

“The key thing for me as Chancellor is to be honest with people about the challenges we face, and I will respond to those in the budget,” she said.

Reeves will deliver her second Autumn Budget on November 26, as Britain struggles with weak growth, high inflation, and elevated borrowing costs.

While refusing to confirm any tax changes, Reeves said she wanted to make the U.K. “the best place to trade, invest, and do business.” She also called on financial regulators to balance growth with risk management.

Reeves has faced criticism since her previous budget, when she introduced strict fiscal rules limiting spending and borrowing. Under those rules, daily government expenses must be covered by tax revenues, and public debt must fall as a share of GDP by 2029–30.

This week, she hinted that maintaining those targets might require revisiting tax promises, a move that could prove politically unpopular. Breaking her own fiscal rules could unsettle markets, where U.K. 30-year bond yields remain above 5%, the highest among G7 nations.

Reeves insisted she would stay on course toward fiscal consolidation.
“We know the deficit has been too high. I’m determined to reduce borrowing costs, bring down debt, and build a stronger economy based on fiscal responsibility,” she said.