STRONG FOUNDATIONS | SECURE FUTURE

WE TAKE A LOOK AT THE BACKGROUND AND KEY INFLUENCES TO TODAY'S BUDGET

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It is not unusual for a government to borrow in order to spend more than it receives in taxes and other income. The last time the government spent less than it received was in 2000/01.

Should borrowing continue to be higher than expected, Rachel Reeves may need to find additional ways to ensure she has enough "headroom" in her Budget to balance the nation's finances.

ECONOMIC GROWTH

Growth in 2025 has slowed as the year has gone on.

The size of the economy grew by 0.7% in January-March, by 0.3% in April-June, and by just 0.1% in July-September, according to estimates by the ONS.

In addition, the economy is estimated to have contracted by 0.1% in September, driven by a fall in motor manufacturing due partly to the cyber attack on Jaguar Land Rover.