UK Chancellor Rachel Reeves pledges strict fiscal rules and possible taxes to cut debt ahead of November 26 budget.

UK Chancellor Rachel Reeves reaffirmed her commitment to strict fiscal rules ahead of the November 26 budget, aiming to reduce inflation and lower the country’s high borrowing costs. She signaled potential tax increases to meet fiscal targets by 2030, citing weak growth and rising debt, with national debt at £2.6 trillion and interest payments consuming 10% of tax revenue. Markets reacted with falling bond yields and a weaker pound, while the FTSE 100 dropped amid investor uncertainty over tax and spending plans. Reeves emphasized that reducing interest payments would free funds for public services, though clarity on reforms remains limited.