Welcome to our live coverage of the UK Budget. Chancellor Rachel Reeves will deliver her Budget speech at 1230gmt.
The live blog is now closed. Please see our in-depth coverage to read more.
1750gmt
End of Budget Day Market Wrap Up
By Carla Rosch
The FTSE 100 temporarily dipped slightly after the premature release of budget details, but bounced up and ended higher than the previous day. The index rose 0.85 percent, closing at 9,691, a sign that markets were not overly rattled by the budget announcement. The FTSE 250 also ended on a positive note, 1.24 percent higher, reflecting a mildly optimistic view about UK companies.
1705gmt
By Laiba Yousaf
X reactions to Reeves’s Budget
Broadcaster Piers Morgan mocked the Budget on X with a message to Reeves, “Thanks Rachel.”
Andy Palmer, CEO of Aston Martin and COO of Nissan, states “Ms Reeves will allegedly claim her hand has been forced by a major downgrade in UK productivity, with workers expected to be hit with an £8bn raid.”
Owen Jones, British Journalist and political activist, weighed in on the two-child benefit cap, describing it as “the biggest single driver of child poverty.” Jones continued, “Labour were forced to drop it because people fought for it. Pressure works!”
1646gmt
By Martha Mitchell
Backbenchers Celebrate Lifting of Two Child Benefit Cap
Left wing backbench MPs Rebecca Long Bailey and John McDonnell took to social media to praise the abolition of the two child limit on benefits. The policy was first passed in 2017 by the Conservative government and Labour’s refusal to abolish it in 2024 caused upset within the party. In X posts, the two Labour MPs lauded the removal of the cap, with Long Bailey congratulating “all who had worked hard on this” and calling it “absolutely the right thing to do”. McDonnell’s post paid tribute to colleagues who stood firm and announced, “We’ve won”. The scrapping of the two child limit is predicted to benefit 1.6 million children and lift over 450,000 out of poverty.
1555gmt
By Carla Rosch and Teddy Stoddart
The FTSE 100 gained 83 basis points, standing at 9,692 in the hour before the market close. This represents a 0.87 per cent increase from yesterday’s close, a positively mild response to the budget speech.
The top loser of the day is home builder Berkeley Group, which dropped 3.28 per cent after taxes targeting luxury homes were announced.
The pound has seen modest rises against the Dollar and Euro. Despite seeing significant fluctuations in the middle of the day after the OBR leak, the foreign exchange market stabilised after the speech, modestly higher than at the start of the day.
1545gmt
By Laiba Yousaf
The IFS has responded to Chancellor Reeves’s Budget
The Institute for Fiscal Studies (IFS), one of the UK’s leading think tanks, has provided a response to the new economic forecast and policy announcements contained in the 2025 Budget.
IFS says that Rachel Reeves has delivered a “big Budget”, but not because of instant tax hikes. Instead, the Chancellor has chosen to borrow more now and raise taxes later, banking on a £22bn fiscal buffer to protect against future volatility.
The IFS argues the government avoided a serious “fiscal repair job” thanks to higher-than-expected inflation and wage growth boosting tax receipts, alongside spending pressures such as pensions and special educational needs.
While Reeves has pledged not to raise headline rates of income tax, VAT, or National Insurance, the IFS notes that she has still delivered a major tax increase through frozen thresholds, calling it a clear tax rise “on working people.”
The think tank warns that the hard part is still ahead. The Budget relies on back-loaded tax rises and tight spending plans after 2029, which it says may prove “difficult to deliver.”
1539gmt
by Marcos Arizpeleta
FSB: “Today’s Budget shows the peril of a continuing economic doom loop”
The Federation of Small Businesses (FSB) has criticized today’s budget, saying that record-high taxes and measures such as dividend tax hikes and employer pension charges risk keeping the economy “stuck in the same rut” and they “continue to make investing in your own business one of the least tax-friendly things you can do with your money.”
While welcoming steps on Small and Medium-sized Enterprises (SME) training and the new jobs guarantee scheme, the FSB said the budget does too little to support small firms and high streets.
FSB Policy Chair Tina McKenzie called on the government to follow through with “serious, pro-growth measures” to restore confidence and support new business creation, and warned that without those steps small businesses could face another year of constrained growth and investment.
1525gmt
By Laiba Yousaf
Reeves has Proposed Major Changes to Gambling
The Gambling industry is going to be taxed now more than ever, to raise more than £1bn, according to HMRC. This will support the public finances in hopes to create a more fair and sustainable taxing system.
Reeves has announced that tax on online betting will increase to 25% and Remote Gaming Tax will see an increase from 21% to 40% with Bingo tax being completely abolished from 1 April 2026.
Following concerns for tax rises on racing bets, an unprecedented one-day strike was held in September 2025, potentially leading to the sparing of tax rises.
The British Horseracing Authority (BHA) has reacted to Reeves’s decision for racing bets to remain at 15 per cent in recognition of its cultural significance and sporting asset that is enjoyed by millions of people across the globe.
They argued that a rise in taxation would have had “catastrophic implications”, which supports 85,000 livelihoods and has an economic impact of £4bn.
1505gmt
In response to Reeves’ budgets Reform’s Nigel Farage asks, “Who is going to pay these increased taxes?”.
1447gmt
By Marcos Arizpeleta
CBI Warns UK Growth ‘Stalled’ Amid Mixed Budget Measures
The Confederation of British Industry (CBI) in a press release has warned that the UK’s growth mission is “currently stalled.”
While praising the Chancellor for creating fiscal headroom the business group criticized the government’s “scattergun approach to tax”.
The CBI also said the Budget missed an opportunity for bolder tax reform to stimulate business investment and job creation as it says “increased employment costs make it even more expensive for employers to offer jobs to young people and jobseekers.”
1425gmt
By Laiba Yousaf
Reeves to Reform Motability Scheme: No more Luxury Cars
The Chancellor announced plans to reform the ‘Motability’ scheme, which allows those receiving a disability benefit such as the Personal Independence Payment (PIP) to lease cars using state funding.
Disabled people will no longer be allowed “premium” vehicles such as Audi, Mercedes-Benz and BMW. Reeves said that the decision will “reduce generous taxpayer subsidies” and focus on the increased use of British-built cars to help boost the economy.
The Motability Scheme announced that they aim that by 2035, half of all vehicles leased through the Scheme will be British built.
1422gmt
By Teddy Stoddart
Bond market bounces during Chancellor’s speech
Bond markets have settling after a chaotic afternoon of political events.
08:00 – Yields on 10-year government bonds opened at 4.50% this morning and remained steady in the run-up to the budget.
12:40 – The OBR leak surprised markets and caused an immediate drop in the bond yields to 4.44% before rising to 4.55% within 20 minutes.
During the speech – Yields continued to fluctuate as Chancellor Rachel Reeves spoke, before settling at 4.67% as her speech finished.
Today’s movements represent a modest overall wobble, indicating that the markets have not been spooked by the Chancellor’s plans and that her strategy of ‘pitch rolling’ policies in the run-up to the budget has been successful.
1343gmt
Opposition leader Kemi Badenoch is now responding to Chancellor Reeves’ speech, saying that Labour has “lost control of welfare spending”
1337gmt
by Laiba Yousaf
Rachel Reeves introduces driver tax for electric and hybrid vehicles
A new mileage tax is announced in today’s budget. Those who own electric or hybrid vehicles will face a pay-per-mile tax.
Reeves has announced that drivers of electric vehicles will now be taxed according to how much they drive and not just by the type of car that they own.
The OBR’s leaked document stated this annual tax would mean electric car drivers will pay a fee of 3p per mile and hybrid drivers will pay 1.5p per mile from April 2028.
1327gmt
The biggest barrier to equality is child poverty, emphasizing the “triple costs” to society. Reeves has formally announced the removal of the two child limit, “lifting 450,000 children out of poverty.
1321gmt
Reeves announces package changes for hospitality and retail, promising “greater freedoms for pubs.”
1304gmt
The Chancellor announces GDP growth for 2025 set to be 1.5%, 0.5 percentage points higher than the OBR’s March forecast of 1.0%. But rates lower than previously anticipated have been forecast for 2026 – 2029.
1319gmt
Reeves is providing £5m for libraries in secondary schools and £18m funding for playgrounds in England
Reeves claimed that the Tories “left classrooms crumbling and waiting lists sky-high.”
1311gmt
Chancellor announces Income tax thresholds remain frozen, meaning millions to pay more income tax.
1247gmt
by Ramy Danial
The OBR’s forecast report posted early in error reveals a widely expected drop in productivity as an unemployment crisis looms. The OBR’s Spring forecast predicted a 1.3% productivity increase for 2025 however this has been downgraded 0.3 percentage points, now sitting at 1.0%.
A drop in productivity implies that supply side growth in the British economy will be slower to produce goods and services, which underpins the Government’s ability to generate revenue.
1236gmt
Reeves has taken the podium
1234gmt
OBR apologises after leak ahead of Budget
From a statement on the website,“We apologise for this technical error and have initiated an investigation into how this happened.”
1224gmt
Budget 2025: OBR report leaked before Budget
by Frank Wolfreys
The Office for Budget Responsibility’s (OBR) report was accidentally released online before the Chancellor’s speech on Wednesday. Prime Minister Keir Starmer has stated that details of the budget will be released within minutes.
Starmer told Parliament it is “for the OBR” to answer questions about the historic leak of its budget forecast, ahead of what is shaping up to be the most heavily leaked Budget in decades.
Opposition Leader Kemi Badenoch urged the government to “identify and punish those responsible” for the premature release of key documents that shaped the Chancellor’s Budget.
IFS head Helen Miller called the leak “unimaginable”, saying it was “utterly extraordinary” that the contents of the Budget is being read out 15 minutes before Reeves is about to take the floor.
1107gmt
Farmers hold Budget Day Protest
by Frank Wolfreys
Farmers defied a London tractor ban in their latest protest in Westminster this morning, as Chancellor Rachel Reeves prepared to unveil another raft of tax rises at lunchtime.
Rural workers are angry at a £1 million cap on tax-exempt inheritance introduced by Reeves last year, claiming that it unfairly targets family farms with large assets but little cash.
Several videos on social media show trails of tractors driving through London streets, draped in anti-Labour flags.
On Monday, NFU Cymru’s president Aled Jones said in a statement that it was “not too late to stop family farm damage”, referencing the controversial proposals set to take effect in April 2026.
“The biggest frustration for so many farmers is that the UK Treasury has been served a raft of evidence – from tax experts, the wider supply chain and cross-party MP committees – that the consequences of these changes will be catastrophic”.