04/11/2025. London, United Kingdom. Chancellor Rachel Reeves delivers a Budget scene setter speech at No 9 Downing Street. Treasury. Picture by Kirsty O'Connor / Treasury.

The pound is down, and Rachel Reeves, the UK Chancellor, is dominating the political cycle on Tuesday.

What she said : The government successfully "fixed the foundations" of the economy at her last Budget, but that since then "the world has thrown even more challenges our way".

Asked about the manifesto promises not to raise income tax, National Insurance or VAT, she said: "As Chancellor, I have to face the world as it is not the world that I want it to be."

But what she is actually telling us is :

She is going to break Labour's manifesto pledge and raise income taxes.

Context : The government must cut spendi

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