Clearly, Reeves’ rumoured hike in employers’ national insurance contributions could in theory fill most of the fiscal black hole – but at what cost to the PAYE population?
With such a strong majority, it seems that now is her only shot to deliver these unpalatable tax hikes and set the tone for the next four years so that industry leaders at least know what to expect from Starmer’s premiership.
Reeves has already angered Commons speaker Lindsay Hoyle, who on Monday said it’s ‘totally unacceptable to go around the world telling everybody’ of her mandates without informing MPs first. We expect to see plenty more of this husband-and-wife bickering between ministers later on today.
What’s on the agenda this afternoon?
As all Budget fanatics well know, the first part of the statement will typically begin with a review of the UK’s financial situation.
So once Reeves is done slaughtering the Tories for leaving her to pick up a bar tab of no less than £22bn, she’ll move onto their proposed remedy.
The Budget also permits the chancellor to enjoy a drink of their choice, and after some thorough research we’re guessing she’ll opt for an earl grey tea with lemon – though depending on how the afternoon goes it could be something considerably stiffer.
For our readers in the financial sector, as long as the Labour Party doesn't turn the bond market upside down or the sterling into oblivion then it should be a relatively quiet day at the office. Famous last words.
Joseph Wilkins is chief reporter at Asset Allocator
