"But Rachel Reeves, the chancellor, is already facing criticism about the handling of the process ahead of Wednesday, and this morning, with the CBI holding its annual conference, those comments are getting fresh prominence. Put bluntly, expectation management is widely seen as having been shambolic. Two decisions in particular have backfired. First, this time last year, at the CBI conference, Reeves said explicitly that the 2025 budget would not involve tax rises on the scale of the 2024 one,"
"Then, three weeks ago, Reeves gave a speech in Downing Street signalling very clearly to the markets, and to her party, that she was going to have to raise income tax in the budget, in breach of the manifesto. (Some of her allies now claim she was only floating an option, but that is not how her government colleagues understood it, or presented it, at the time; she was pitch rolling, not kite flying.) But then she changed her mind."
There are two days until the budget and the main measures are broadly known, but final debate awaits. Chancellor Rachel Reeves faces criticism for mishandling expectation management, notably by reversing earlier assurances. Last year she said the 2025 budget would not include tax rises on the scale of 2024, yet similar rises now appear likely. Three weeks ago she signalled a need to raise income tax, then later changed course. The resulting prolonged speculation and mixed messaging has reportedly caused paralysis among businesses and consumers, and economists link it to flatlined growth and weaker retail data.
Read at www.theguardian.com
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