When Labour unveiled its latest Budget under Rachel Reeves, the response from newspapers, analysts and politicians was swift and predictably polarised.

The announcement triggered scrutiny over fiscal responsibility, economic forecasters’ credibility and the promises Labour made before the election.

A difficult backdrop ahead of the Budget

In the run-up to the Budget, Prime Minister Kier Starmer had said that “tough but fair” choices would be necessary to balance public finances while protecting core services.

Media outlets widely discussed the possibility that Labour might raise taxes despite its manifesto pledge not to do so. There was particular concern over so-called “stealth” tax measures such as freezing income tax thresholds, which can push more people into higher tax bands as incomes rise with inflation.

Budget day and immediate press reaction

On 26 November Reeves announced the Budget. It involved approximately £26 billion in tax increases over the course of the parliament, by freezing thresholds and increasing levies on pensions salaries via national insurance changes. The premature leak of forecasts from the Office for Budget Responsibility (OBR), just before the public Budget speech, also provoked criticism.

Coverage across centrist and right-leaning media highlighted frustration at what was described as the breaking of core Labour promises, especially the manifesto commitment not to raise income tax, national insurance or VAT for working people.

What analysts, think-tanks and business voices said

Some voices welcomed certain aspects of the budget, such as the abolition of the two-child benefit cap – a long-awaited proposal for many within Labour ranks. According to supporters, that move aligned with Labour’s emphasis on fairness and helping working families.

Critics painted a more worrying picture. Several economists and commentators warned that freezing thresholds functions like a stealth tax that hits middle-income families and pensioners who had previously escaped higher rates.

Some experts predicted the Budget would weigh on growth rather than help it, suggesting it might increase inflation and unemployment or otherwise depress business confidence.

Some investors signalled unease. Rising government borrowing costs and a sell-off in gilts were noted in some outlets, as uncertainty over the sustainability of this fiscal path unsettled markets. GBNews quoted a senior UK economist at Berenberg bank saying the decision demonstrated “a lack of political competence” that would make investors predict a change in government leadership.

Polling and public sentiment

Public reaction was broadly negative. According to a YouGov poll, 48% of Britons judged the Budget unfair, compared with 21% calling it fair. Nearly half of those surveyed said the Budget would make them worse off; only a small minority believed it would improve their personal situation.

Only 15% think the government is handling the economy well. The current political betting odds suggest that Labour are second favourites behind Reform UK to win the next general election.

Approval ratings for Reeves as Chancellor dropped. A majority (59%) said she was doing a bad job; that includes a significant portion of Labour voters.

Political backlash and debate over manifesto loyalty

Opposition voices, notably from the Conservatives, accused Labour of abandoning its election promises. For many, the Budget broke trust.

Within Labour there was tension as well. Some MPs welcomed measures such as the removal of the two-child cap; others raised concerns that the wider tax rises undermined the party’s commitment to protecting working people.

The credibility of the OBR also came under question, after its leak of forecasts before the Budget triggered criticism from some ministers.

From Labour’s leadership, including Starmer, there was a concerted effort to defend the Budget as necessary given today’s economic circumstances. Starmer argued that growth forecasts had improved with the latest update from the OBR, and insisted the Budget offered a balanced mix of tax, welfare, and investment measures.

Supporters of Labour in the media highlighted the Budget’s welfare-orientation and efforts to ease cost-of-living pressures for families.

A fragile consensus

Overall the reaction to the Budget has been fractured. Some see it as a pragmatic attempt to stabilise the public finances while preserving commitments to welfare and public services. Other commentators view it as a betrayal of Labour’s own pledges, with unintended economic consequences: higher taxes, weaker demand, slower growth. The public appears unconvinced.