Client Update - 7th November 2025

The chancellor’s speech on Tuesday was a strange thing indeed. Emergency speeches in the early hours of the day are normally reserved for resignations or drastic news – sadly, we got neither.

Having considered her intentions over the last few days, it seems more likely that she was talking to the markets rather than the general public, to smooth concerns that she has no plan. As I have written previously, UK Gilt yields remain high, therefore the cost of maintaining our almost £3 trillion debt burden is also at record levels and creating further “black holes” in our public finances. If purchasers of UK debt start to believe she has a plan for growth, then maybe Gilt yields will finally start to fall and relieve some of the burden on the chancellor to raise taxes. Yields on government debt in the US and Germany have started to fall, but not yet in the UK, underlining the lack of confidence in the UK economy and the chancellor herself.

It is clear that existing taxes cannot create enough revenue for the chancellor to meet her fiscal rules and as a result, when we tuned in on Tuesday, we assumed we would hear her confirm that she is willing to break her manifesto pledge not to raise the main taxes on “workers” – those of income tax, VAT and national insurance. It does seem likely that an income tax rise is to be announced on 26th November, however we have not heard any plans for boosting growth in the UK – which surely is the most important issue she has to solve. Fixing a very strange taxation system that stops people from wanting to move house, thus supporting the economy, reviewing the triple lock on pensions and considering an overhaul of the council tax system are all on the cards, but these have to be tied into an overall growth plan. If we do not get this, then I fear the UK will continue to be shunned as a place foreign investors wish to support, and entrepreneurs will leave our shores, further stifling growth. Come on chancellor, let’s get a proper plan in place that we can all believe in, stop messing about on an annual basis which causes significant confusion and start building some confidence in our wonderful country. Although my brain is telling me it is a foolish hope, my fingers remain crossed. Do have a good weekend.