Rachel Reeves says economy ‘not working well enough’ as she sets Budget date

The next Budget will take place on 26 November, the chancellor has announced.

Rachel Reeves said Britain’s economy wasn’t “broken” but admitted it was “not working well enough for working people”.

“Bills are high. Getting ahead feels tougher. You put more in, get less out. That has to change,” she said.

Reeves will set out the next round of tax and spending updates later than expected, as last year’s Budget took place on 30 October.

The chancellor is facing growing pressure from businesses to address a sluggish UK growth outlook and the impact of April’s tax rises and the increasing minimum wage.

The hospitality industry has accounted for more than half of all job losses in the UK since the October 2024 Budget, with almost 89,000 roles disappearing, according to UKHospitality.

Data from CGA and AlixPartners found an average of two hospitality venues a day permanently closed during the first half of 2025.

The OBR had predicted 50,000 layoffs could come as a direct result of increases to employers’ National Insurance Contributions.

Michael Kill, chief executive of the Night Time Industries Association, said: “This Budget cannot be business as usual. The decisions taken on 26 November will define the survival of thousands of businesses and the futures of the people they employ. The government must listen, and act, before it is too late.”

Reeves has reportedly been exploring several tax-raising measures over the summer months, including overhauling property taxes or council tax.

Labour has committed to keeping its manifesto promise not to raise taxes directly on “working people” via income tax, national insurance or VAT.