The first budget of the Labour government has triggered political fallout at Westminster after fresh forecasts revealed rising costs for households, weaker economic growth and worsening public finances.
The Chancellor delivered her statement against a backdrop of falling favourability ratings for both the Prime Minister and herself, and with pressure growing inside the party over the direction of the UK economy.
The figures released alongside the budget confirmed that energy bills are now £337 higher than the level promised by Keir Starmer, even after the measures announced today.
Food inflation remains at 4.9% and overall inflation has climbed from 2% to 3.6% with further increases expected in January and April.
Economic growth has been downgraded for every year until 2029 after the Office for Budget Responsibility revised its forecasts and warned that the UK is heading for the lowest growth per capita in the G7 next year.
Borrowing for October 2025 has risen to £116.8 billion which is the highest figure since the pandemic and 8.4% higher than the same point in the previous year.
Overall UK government debt now stands at £2.9 trillion which puts continued pressure on departmental spending and future tax decisions.
The employment picture has also weakened with UK unemployment rising to 5% which is the highest level since December 2020.
A total of 1.79 million people are now unemployed which represents an increase of 282,000 on last year.
Polling has added to the turbulence with new YouGov figures published on 20 November placing both the Prime Minister and the Chancellor at their lowest ever favourability ratings.
Keir Starmer’s net rating stands at minus 54 which is lower than the rating recorded by Boris Johnson on the day he resigned as Prime Minister.
Rachel Reeves has a net rating of minus 57 which is below Kwasi Kwarteng’s worst figure of minus 56 during the aftermath of the mini budget crisis.
Responding to the budget, SNP Westminster Leader Stephen Flynn said the figures point to a difficult year ahead for households already struggling with rising costs.
“This was Keir Starmer and Rachel Reeves’ last budget.
“They promised change but delivered complete chaos, higher energy bills, higher food prices and a soaring cost of living, it’s no wonder their own MPs are now plotting to get rid of them.
“Yet again, families are being forced to pay the price for Labour Party failure with billions of pounds of cuts, tax hikes and rising costs hammering households and public services.
“Voters were promised things would get better but under the Labour Party they got worse, with higher household bills, unemployment at a four year high, economic growth slashed, public finances in a mess and hard pressed families struggling from payday to payday.
“Nothing announced today changes that and there is a real danger the anti growth measures in this budget will extend the UK’s doom loop and lead to another crisis budget next year.
“Brexit Britain is Broken and under the Labour Party it has got even worse.
“At the election next year, voters can get rid of Starmer and secure a fresh start with independence by voting SNP.”
