UK's 2025 budget raises taxes, boosts welfare, eases debt fears but sparks union backlash and growth doubts.

The UK’s 2025 Budget, delivered by Labour, raised taxes and increased welfare spending amid high debt and slow growth, yet markets remained calm. While businesses welcomed reduced political uncertainty, the public criticized new taxes and stagnant incomes. Labour faced internal tensions after reversing promised day-one unfair dismissal protections, angering unions. Stronger-than-expected tax revenues eased fiscal concerns, but rising spending fuels doubts about growth and tests the party’s credibility ahead of devolved elections.