With another major Budget announcement just days away, conversations across the UK have shifted from casual curiosity to genuine concern.
People are eager to know what the Chancellor will do next, especially after months of speculation that have left businesses, investors, and everyday citizens feeling stuck in limbo.
Growing Fears About Economic Drift
Former Bank of England chief economist Andy Haldane didn’t mince words as he described the situation.
After more than three decades at Threadneedle Street, he warned that the constant swirl of rumours and political back-and-forth around Rachel Reeves’s Budget has stalled the economy.
According to him, this “fiscal fandango,” as he put it, has drained confidence and left growth completely stagnant in recent months.
A Budget Overshadowed by a Huge Financial Gap
As Reeves prepares to deliver her second Budget, she faces a massive shortfall in public finances.
To stop the hole from getting deeper, she’s expected to extend the freeze on income tax thresholds until 2030—two more years than previously planned.
Reports suggest she may also target salary-sacrifice schemes, consider a tax on high-value homes, and explore charging electric-car drivers per mile.
What seems to be off the table now is the widely criticised idea of adding 2p to income tax rates—a proposal that was floated, rejected, and then re-rejected in a confusing U-turn.
Experts Brace for More Turbulence
Andy Haldane wasn’t the only one sounding alarms.
Paul Johnson, former head of the Institute for Fiscal Studies, blasted the Budget process as “a shambles,” saying the endless second-guessing about Reeves’s plans has been genuinely harmful.
He pointed out that the Bank of England itself cited Budget speculation as the top contributor to the UK’s sluggish growth.
Despite the criticism, some in government are pushing back.
Transport Secretary Heidi Alexander argued that the problem lies not with the Chancellor but with the Office for Budget Responsibility, whose recent productivity downgrade created an unexpected £20 billion hole.
Calls for a Clear, Final Direction
Haldane urged Reeves to use this week’s Budget to put an end to fears of further tax rises once and for all.
He said the entire process needs a redesign—claiming it’s become too drawn-out, too leaky, and too costly for the economy.
He warned that financial markets are watching closely and that the government risks a “Wile E. Coyote moment”—the kind where the ground suddenly drops away beneath them.
With expectations that Reeves will spend roughly £3 billion more each year by removing the two-child benefit cap, he stressed that investors want reassurance that the government can actually control public spending.
Voices Warning of Crisis
Former Chancellor Lord Ken Clarke added his own concerns, warning that the UK could stumble into a “serious financial crisis” if the Budget is mishandled.
He argued that the government’s mixed signals have created “gloom and dismay,” leaving the impression that ministers aren’t sure what their plan really is.
Political Clashes Intensify
The tension isn’t limited to economists. Reeves recently expressed frustration over being “mansplained” to about how to run a Budget.
But Conservative shadow chancellor Mel Stride dismissed her comments as a distraction tactic.
He insisted the real issue is mismanagement—highlighting rising unemployment, weak business confidence, and stubborn inflation.
Stride said the Chancellor must now show exactly how she intends to rein in public spending, particularly welfare costs, to avoid yet another wave of tax increases.
Looking Ahead
With only days remaining before the Budget is unveiled, the country is waiting to see whether Reeves will calm the markets, restore confidence, or deepen the uncertainty that experts say has already taken a toll.
For now, all eyes are on Wednesday—hoping for clarity after months of confusion.
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