Published by Global Banking and Finance Review
Posted on November 4, 2025
1 min readLast updated: January 21, 2026
Finance Minister Reeves commits to necessary measures for economic stability, focusing on high inflation and interest rates, with potential tax increases.
LONDON (Reuters) -British finance minister Rachel Reeves said on Tuesday she would do what is necessary - not popular - to protect the country against high inflation and high interest rates as she weighs whether to increase taxes at the November 26 budget.
In a rare pre-budget speech, Reeves said her annual fiscal update would be "for growth with fairness at its heart, and a budget that supports businesses to create jobs and to innovate."
"As I take my decisions on both tax and spend, I will do what is necessary to protect families from high inflation and interest rates," she said, adding this would be "to protect our public services from a return to austerity and to ensure the economy that we hand down to future generations is secure with debt under control."
(Reporting by Sarah Young, writing by Sam Tabahriti, Editing by Kate Holton)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI).
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage of the principal. They can influence economic activity and inflation.
Economic growth is the increase in the production of goods and services in an economy over time, typically measured by Gross Domestic Product (GDP).
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