Finance
What did UK's Reeves say in her budget speech?
Published by Global Banking and Finance Review
Posted on November 26, 2025
4 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 26, 2025
4 min readLast updated: January 20, 2026
UK finance minister Rachel Reeves' budget speech focuses on tax reforms, removing the two-child benefit cap, and boosting investment for economic growth.
LONDON (Reuters) -British finance minister Rachel Reeves is delivering her annual budget on Wednesday, unveiling billions of pounds in tax increases.
Here are some of the main quotes from her speech to parliament:
ON OFFICE FOR BUDGET RESPONSIBILITY RELEASING OUTLOOK EARLY
"It is my understanding that the Office of Budget Responsibility's economic and financial outlook was released on their website before this statement. This is deeply disappointing and a serious error on their part. The Office of Budget Responsibility have already made a statement taking full responsibility for their breach."
ON TAX
"I am asking everyone to make a contribution, but I can keep that contribution as low as possible because I will make further reforms to our tax system today to make it fairer and to ensure the wealthiest contribute the most."
"Today I will maintain all Income Tax and equivalent National Insurance thresholds at their current level for three further years from 2028... I know that maintaining these thresholds is a decision that will affect working people. I said that last year and I won't pretend otherwise now."
"I can confirm that I will not be increasing National Insurance, the basic, higher or additional rates of Income Tax or VAT (Value Added Tax)"
ON TWO-CHILD BENEFIT CAP
"Because I am tackling fraud and error in our welfare system, because I am cracking down on tax avoidance, because I am reforming gambling taxation, I can announce today – fully costed and fully funded, the removal of the two-child limit in full from April.
"We on this side of the house do not believe that the solution to a broken welfare system is to punish the most vulnerable children."
ON TODAY'S BUDGET
"Today's budget builds on the choices we have made since last July: to cut NHS waiting lists, to cut the cost of living, and to cut the debt and borrowing. No doubt, we will face opposition again. But I have yet to see a credible, or a fairer alternative plan for working people."
NO RETURN TO AUSTERITY
"I said there would be no return to austerity, and I meant it. This Budget will maintain our investment in our economy and our National Health Service. I said I would cut the cost of living, and I meant it. This Budget will bring down inflation and provide immediate relief for families. I said that I would cut debt and borrowing, and I meant it."
BEAT FORECASTS
"We beat the forecasts this year and we will beat them again: Boosting trade, not blocking it. Increasing investment, not cutting it. Championing innovation, not stifling it. Backing working people, not making them poorer. Brick by brick we've been building growth in our economy. Building roads, building homes, Getting spades in the ground and cranes in the sky."
PRIVATE INVESTMENT IS 'LIFEBLOOD'
"Private investment is the lifeblood of economic growth but growth needs public investment too. When faced with challenges, previous chancellors have chosen to decrease, delay or cancel capital spending but low investment is the cause of our productivity problems, not the solution.
"So my choice is not cuts, not stagnation but to maintain the additional £120 billion of investment I provided at the spending review."
'IRON-CLAD' FISCAL RULES
"A growing economy needs strong foundations of economic stability, with borrowing and inflation down and investment up. That is good for business, and it is good for working people – so they have more money in their pockets.
"Economic stability, safeguarded by iron-clad fiscal rules, is our best defence against rising prices and the best way to improve living standards."
ON FISCAL RULES ASSESSMENT
"Going forward, to support our commitment to a single fiscal event and further strengthen our economic stability. I will follow the recommendations of the International Monetary Fund by assessing the fiscal rules just once a year at the Budget."
ON BUDGET CHOICES
"I’ve made my choices. Not reckless borrowing, not dangerous cuts, but stability for our economy. security for the public finances. and security for family finances too."
ON CUTTING WASTE
"At this budget, I will find a further 4.9 billion pounds of efficiencies by 2031: getting rid of Police and Crime Commissioners, cutting the cost of politics and local government and selling government assets that we no longer have any use for.
"These savings will be required across government. But for our National Health Service, I will invest these savings back into the care that people rely on more nurses, more GPs (general practicioner doctors) and more appointments."
(Reporting by Catarina Demony; Editing by William James)
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