Chancellor of the Exchequer Rachel Reeves declined to reiterate Labour’s manifesto commitment against broad-based tax hikes, as she made an unusual appeal to the British public to support her upcoming budget.

In a rare pre-budget speech in Downing Street carried on national broadcasters, Reeves argued she would prioritize bringing down borrowing costs and inflation, and blamed the previous Conservative administration for putting lasting pressure on the public finances.

In the clearest hint yet that the Labour government will compromise on its commitment to avoid lifting the UK’s main tax levers, Reeves said the world had changed since it came to power in July 2024.

In this special episode of the Bloomberg Daybreak Europe Podcast, Stephen Carroll and Caroline Hepker discuss with UK Correspondent Lizzy Burden, Bloomberg Opinion columnist Marcus Ashworth, and our Chief UK economist Dan Hanson.