Risk remains that chancellor Rachel Reeves will be back for more in next year’s UK budget

Britain's budget unveiled last week sees taxes rise but few signs of growth

British chancellor of the exchequer Rachel Reeves poses outside 11 Downing Street, London, with her ministerial red box, before delivering her budget in the House of Commons. Picture: PA

Mon, 01 Dec, 2025 - 08:08

David McNamara: British economy is stuck in stagnation

David McNamara is the Group Chief Economist at AIB responsible for leading the bank's macroeconomic analysis and provide insights for both national and international stakeholders.

While markets took a sanguine view of the UK budget, the measures represented a further up front boost to public spending, paid for largely by back loading tax-raising measures.

With growth forecasts cut by the Office for Budget Responsibility (OBR), and no major policies to boost growth, the risk remains that the British chancellor Rachel Reeves will be back for more in next year’s budget, if her ‘fiscal headroom’ begins to slip again.