Rachel Reeves has promised to “push ahead with the biggest drive for growth in a generation”, and insisted she would not “lose control of public spending”, as she prepares to deliver the Budget.
The Chancellor is set to deliver her second Budget on Wednesday, when she has warned she will raise taxes to fill a black hole in the public finances.
Ahead of the statement in the House of Commons, Ms Reeves said she would “take the fair and necessary choices to deliver on our promise of change”.
She said: “I will not return Britain back to austerity, nor will I lose control of public spending with reckless borrowing.”
Her three priorities for the Budget would be cutting the cost of living, cutting NHS waiting lists alongside delivering public service reforms, and starting to reduce the cost of public debt.
The Chancellor said: “And I will push ahead with the biggest drive for growth in a generation.
“Investment in roads, rail and energy. Investment in housing, security and defence. Investment in education, skills and training.
From April, we're raising the National Living Wage and National Minimum Wage.
— Keir Starmer (@Keir_Starmer) November 25, 2025
The cost of living is the number one issue people are facing, with too many struggling to make ends meet.
I am determined to tackle it.
“So together, we can build a fairer, stronger, and more secure Britain.”
As the Chancellor aims to address the cost-of-living crisis, she has announced minimum wage rates are to increase next year, giving a pay rise for millions of workers.
Ms Reeves accepted the latest recommendation from the Low Pay Commission the day ahead of the Budget.
From next April, the National Living Wage will rise by 4.1% to £12.71 an hour for eligible workers aged 21 and over, which the Government said would increase gross annual earnings of a full-time worker on the rate by £900, benefiting around 2.4 million low-paid workers.
Ms Reeves is widely expected to adopt what is being called a “smorgasbord” approach to raising taxes at the Budget.
This could include hiking council tax levies on expensive properties, a so-called “mansion tax”, and freezing income tax thresholds, a move which would drag more people into paying higher tax without raising the headline rate.
Ministers on Wednesday also announced plans for regional mayors to tax overnight tourism stays if they wished.
The soft drinks levy, also known as a “sugar tax”, is also set to be expanded to include pre-packaged milkshakes and lattes.
Ahead of the Budget, shadow chancellor Sir Mel Stride meanwhile claimed Ms Reeves is “trying to pull the wool over your eyes”.
He added: “Having already raised taxes by £40 billion, Reeves said she had wiped the slate clean, she wouldn’t be coming back for more and it was now on her.
“A year later and she is set to break that promise.
“Tax rises won’t be the product of tough choices, but the Chancellor’s refusal to face them.
“This Budget isn’t about economic necessity, it’s about political weakness, and hardworking families are being handed the bill.”
