Rachel Reeves Pulls Tax Twist, Pound Shrugs at Drama
KEY POINTS
- •Chancellor Rachel Reeves abandons income tax rise plans on November 26, 2025
- •Pound trades down 0.24% at approximately £1.3159 versus the dollar
- •10-year gilt yield rises 0.06 percentage points to 4.49%
- •Office for Budget Responsibility improves fiscal forecast due to strong receipts and wages
On the illustrious fiscal rollercoaster of November 26, 2025, Chancellor Rachel Reeves performed a financial moonwalk by scrapping her own income tax hike plans, all thanks to a surprise plot twist from the Office for Budget Responsibility. The UK's economic soap opera continued with the pound barely flinching, trading down a tiny 0.24% to £1.3159 like it just had its morning tea. Meanwhile, the 10-year gilt yield decided to go full drama queen, inching up 0.06 percentage points to 4.49%. Apparently, beefier government receipts and robust wage growth convinced the budget watchdog to hand Reeves a forecast so glowing it was impossible to tax heroes anymore.
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Rachel Reeves canceled taxes after budget forecasts got a glow-up. Pound barely blinked. Apparently, the economy’s waving a ‘no thanks’ sign to drama this autumn.
When your budget watchdog throws you good news, you cancel taxes like it’s Black Friday and the bargain’s too good to miss.
The pound’s reaction to tax cuts is like me hearing ’we got free pizza’: slight disbelief mixed with cautious optimism.
Source: Theguardian | Published: 11/14/2025 | Author: Kalyeena Makortoff
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