Chancellor of the Exchequer Rachel Reeves on Tuesday warned that Britain should prepare for “hard choices” in this month’s budget as the government seeks to stabilise public finances and

reduce national debt without returning to austerity.

In an uncommon move for a finance minister so close to budget day, Reeves used a speech at Downing Street to outline the economic headwinds shaping her decisions. She highlighted persistently high inflation, sluggish productivity and elevated borrowing levels as the central challenges confronting the Treasury.

Reeves said the budget, due on 26 November, would likely require difficult decisions that would “ask all to contribute” in order to safeguard the NHS, schools and employment — priorities she said were essential to the country’s long-term prosperity.

“As I take my decisions on both tax and spend, I will do what is necessary to protect families from high inflation and interest rates … to protect our public services from a return to austerity,” she said.

Taking direct aim at previous Conservative governments, Reeves accused them of opting for “short-term sticking-plaster solutions” rather than serious economic planning. “They were irresponsible then,” she said. “And those who continue to push for easy answers — they’re irresponsible now.”

Her comments appeared to soften Labour’s earlier commitment not to raise major taxes, including income tax, VAT or National Insurance. Analysts say she may be forced to reconsider those pledges to meet fiscal targets.

The Resolution Foundation think tank — previously led by Torsten Bell, now a minister advising Reeves — estimates that the chancellor may need to raise around £26 billion ($35 billion) in additional taxes to deliver her plans. Photo by Lauren Hurley / No 10 Downing Street, Wikimedia commons.