Rachel Reeves can’t win, can she?

[anothervoter]

After days and days of negative press and chatter about income tax going up, complaints on Mumsnet and across the media, today’s reports are that idea might be dropped and now she’s being accused of rattling the markets and making the cost of borrowing increase.

Honestly, genuine question- what can she do?

Apart from the fact we can't really take on any more debt because the markets will charge a punitive price.

So we do have to live within our means by balancing taxation and spending. There is no more putting it on the tab.

Will the extra UC for families with more than 2 DC be immediate, or will they have to wait until next April?

A bust economy affects all of us.

I completely agree that further increases in debt are not an option. So that leaves either:

1. Further increases in taxation which will further slow the economy
2. Cuts in Government spending which are unacceptable to Labour backbenchers.

So in answer to OP's original question then yes Reeves can't win either way and the net result is doom loop of managed economic decline where tax rises slow the economy which reduces taxation revenues are reduced, this results in a need for further tax rises (this budget) which further slows the economy and so on.

And all this while misguided and growth-destroying employment legislation is being pursued by this government.

And it’s happening. I am having to float £500 into our company this month to make payroll.

So many companies have redundancies and are going bust left right and centre.

I am just about to launch a new economy version company because if things carry on as they are or get worse we are not able to pay ourselves from our existing well established company.

It is scary out there and I don’t think most people realise the shitstorm we are in.

Reduce our out of control welfare bill? Her back benchers won't have it. Increase the already immense tax burden on middle-high earners? The population won't have it. Increase borrowing? The markets won't have it.

Yes, she can't win.

Many of us do realise, there are some staunch "see no evil" types who insist everything is going well 🙄

The last budget was a one off though and ‘wipe the slate clean’.

These shouldn’t be needed.

No, but we were fools to believe that. To be fair to her, growth is down on projections and her very sensible proposal to reduce the rate of increase in welfare was chucked out by her own party. I would have resigned after that vote, rather than having a cry and screwing us over a few months later, but there we go.

Problem in the interim Reeves and co have taken a massive shit on the slate so now need to wipe it clean again, as they will next year and the year after.

Ha yes quite.

So 62% arent in work? That is a shocking figure

What do people think this should be when you account for a ageing population?

Cutting cash isa rate could raise mortgage rates and reduce availabilityfor first timebuyers. As predicted.

https://www.theguardian.com/money/2025/nov/25/reeves-plan-cut-cash-isa-limit-could-raise-mortgage-rates-finance-bosses

The bond markets are going to be carnage tomorrow morning. Min wage increases announced tonight, after market close. She knows this isn’t going to be well received.

https://www.bbc.co.uk/news/live/cgmnvz9n2p8t

8.5% for 18-20 year olds 😳

Yikes. Low margin businesses are already walking a tightrope. It’s all very well having a minimum wage increase but for this to be good news you need stable job numbers. Or it’s all rather pointless….

Youth unemployment numbers are bad enough already, this will be devastating for them. And hospitality & retail is on its knees without this added cost.

I just don’t understand who is advising her? Sure, if the market is booming but it really isn’t. It’s already in crisis in some sectors. Retail, hospitality, childcare and care generally.

Minimum wage increases keep driving improvement in the payback for automation which is bad for low skilled employment.

What should happen with wages then?

Yes true. Companies get to the point where it's cheaper to replace with AI. Entry level jobs are already being replaced, this will just speed that up

So what’s the solution? AI isn’t just going to replace low wage jobs. Are people saying the majority need to expect continued wage stagnation as otherwise AI will take their job?

AI will decimate white collar jobs. So there will be more people applying for lower wage jobs. Which have already been filled by the people that have come here. Sadly that means our kids will have to look elsewhere. Which they are already doing.

Buy yourself as much time as you can, I would have thought. Change is coming, but you need to give people time and support to retool. All they have done is speed up an inevitable process.