UK (Parliament Politics Magazine) – Former Bank of England chief economist Andy Haldane brands Chancellor Rachel Reeves’ budget approach a “bad hand played,” hitting consumer confidence.
As reported by The Express, Andy Haldane accused Chancellor Rachel Reeves of mishandling a “bad hand” in her budget decisions.
What did Andy Haldane say about Rachel Reeves’s Budget?
Andy Haldane said,
“One of the reasons we had a very weak growth number last week is because that budget speculation has damped people’s willingness to spend.”
Speaking during an interview, he stated that budget speculation is directly stifling growth, as businesses and consumers remain wary of spending.
When questioned how the chancellor herself has performed, Haldane replied:
“It’s been a bad hand played, in truth, pretty poorly.”
Referring to the chancellor’s performance, the former chief economist said,
“Listen, it’s been a bad hand. Played, in truth, pretty poorly. So mistakes have been made and repeated mistakes. And the worst of that, I would say, is it’s repeated mistakes.
The black hole narrative that you and I discussed a year ago, sucking all life or energy and light from the economy, has been a mistake repeated this time as well. So not enough has been done to give growth a chance to create that stability.”
He added,
“It’s only 16 months since Keir Starmer said I want to tread more lightly on our lives that has singularly not happened. That speculation is proof positive of that.”
Mr Haldane said,
“Right now, we have this halfway house of leaks and speculation which serves absolutely no one – least of all the economy.”
Pressed on the budget’s impact, he responded,
“It has been a long time, isn’t it? I mean, a real circus that’s been in town for months and months now. So speculation and that’s by itself been very bad. I think it’s caused businesses and consumers to hunker down.
One of the reasons we had a very weak growth number last week is because there’s that budget speculation is damped people’s willingness to spend. And first and foremost, we need to stop that speculation.”
What did Kemi Badenoch say about Rachel Reeves’s autumn budget?
Tory leader Kemi Badenoch criticised Chancellor Rachel Reeves for “incessant yo-yoing” and running a “government by guesswork.”
She claimed the chancellor relied on a horoscope to guide her November budget decisions.
Ms Badenoch said,
“In a harried press conference last week, she told us the fiscal situation was so dire that everything was in play when it came to upcoming tax rises. In an interview this week, the Chancellor was adamant that she needed to raise income tax or we could forget about new infrastructure and housing.”
She warned that firms are delaying investment, with confidence “evaporating” ahead of the budget.
Ms Badenoch accused the chancellor of repeating Tory mistakes with less transparency, pointing to frozen income tax thresholds that could raise taxes on low earners.
Which taxes are expected in the UK’s 2025 Budget?
The UK’s 2025 Budget will be released on 26 November by the Chancellor Rachel Reeves.
The expected taxes may include possible reforms and increases in Capital Gains Tax, Inheritance Tax, and wealth-related property taxes. This will target high-net-worth individuals and estates, with changes potentially coming into effect in 2026.
The Budget will review and make adjustments to NICs, though a straightforward rise in employee NIC rates is less likely, with some reform of bases and rates anticipated.
The 2025 Budget may see potential changes to council tax, including possibly higher rates for high-value homes (bands G and H), alongside rumors about business rates and specific sector taxes such as gambling.