Image source, PA Media

An economist and former Treasury adviser says it's now "kind of decision time" for the prime minister and chancellor to identify priorities.

Speaking to BBC Radio 4 on Tuesday, the former Goldman Sachs chief economist Jim O’Neill said the UK bond market has faced a "slow drip" of "further deterioration" over summer.

Government bonds are essentially IOUs, with investors loaning money to the government which then repays them over a set period in time, plus interest. The higher the interest the government pays on the loan, the higher its borrowing cost - under the current Labour government, rates have hit a 27-year-high.

O'Neill says analysts are pointing to four big things "that have to be tackled" if the UK's "underlying fiscal challenges" are going to be addressed, these are:

• the triple lock that dictates the rate at which the state pension rises
• the property market and property taxes
• welfare reform
• improving productivity and value for money in the NHS

He says the government appears to be "quite focused" on the latter, but "on the other three we just don't really know". "I think the markets are now at a point where something needs to happen on that big stuff," he adds.

Michael Race
Business and economics reporter

You’ll no doubt hear a lot about “fiscal rules” in the coming weeks and whether or not the Chancellor is on track to meet them.

Fiscal rules are self-imposed by most governments in wealthy nations and are designed to maintain credibility with financial markets, which loan them money.

Reeves has two rules on government borrowing, which she has repeatedly said are “non-negotiable”:

They are:

• day-to-day government costs will be paid for by tax income, rather than borrowing by 2029-30. This means that by 2030 the government can only borrow for big investment projects and not to cover day-to-day spending
• to get debt falling as a share of national income by the end of this parliament in 2029-30

Last month, the National Institute of Economics and Social Research estimated the gap in the public finances could reach as much as £50bn a year.

Ian Aikman
Live reporter

Image source, Reuters

The clock is ticking. Between now and 26 November, Chancellor Rachel Reeves has some major decisions to make.

Across the BBC, our political, economic and business correspondents have spelled out just how significant this Budget will be for the government and what challenges lie in store.

• Economics editor Faisal Islam says the limited room for manoeuvre ahead of Rachel Reeves’s second Budget will mean some tough political decisions and trade-offs. He adds that the process will inevitably lead to some forms of tax rise
• The chancellor will have to get creative if she wants to keep to her self-imposed financial rules, writes our deputy economics editor Dharshini David. Whatever she chooses, it’s businesses and households who will pay
• The late November date leaves a lot of uncertainty ahead, writes business and economics reporter Michael Race. And if there’s one thing the business world wants to avoid, it’s uncertainty
• Reeves has no easy options in November, chief political correspondent Henry Zeffman writes. Tax rises are widely expected in Westminster, but how can she bring these in without breaching Labour’s pre-election promises?
• The timing of the Budget is significant, cost of living correspondent Kevin Peachey says. Reeves will deliver it just as we learn what’s happening with the energy price cap for the coldest time of the year from January

Image source, Reuters

We've just heard from Chancellor Rachel Reeves after the Treasury announced the Budget will be delivered on 26 November.

In a video message shared on X she says the UK's economy "isn't broken," but "it's not working well enough for working people".

The chancellor acknowledges that bills are still high and "getting ahead feels tougher". "You put more in, get less out," she says, adding: "That has to change."

Reeves goes on to list the government's achievements since the start of Parliament, including securing trade deals with the US, India and the EU, "tearing up planning rules to build 1.5 million new homes" and cutting NHS waiting lists.

Reeves says the government "must" bring inflation and borrowing costs down "by keeping a tight grip on day-to-day spending".

"More pounds in your pocket. An NHS there when you need it. Opportunity for all. Those are my priorities. The priorities of the British people. And it is what I am determined to deliver."

Reeves will need to get creative if she's to stick to her own financial rulespublished at 10:12 BST 3 September

10:12 BST 3 September

Dharshini David
Deputy economics editor

Another chance for the chancellor to brandish the red box, but this Budget is more about challenges than opportunities.

Lacklustre growth and higher borrowing costs mean economists reckon Rachel Reeves has to find more than £20bn if she’s to keep to her own financial rules, spelling substantial tax rises.

The kind of property tax changes that have been speculated about would barely touch the sides in raising that amount. And by ruling out raising the main rates of the big revenue raisers like income tax, the chancellor is going to have to get creative.

The easiest big money raiser lever to pull would be a further freeze on the thresholds at which different rates of incomes tax apply, known as fiscal drag.

Whatever she chooses, ultimately it is businesses and households who will pay - which brings its own risks.

Last year’s tax rises appear to have impacted both growth and inflation, further increases threaten more of the same - impeding not just the government’s key mission of growth but also jeopardising the amount of future tax revenue delivered.

Kevin Peachey
Cost of living correspondent

Amid the chatter of government borrowing, spending and taxation, millions of people will really want to know about support to cope with the cost of living.

The cost of food, fuel and rent remain massive factors in family finances, particularly for those on lower and middle incomes who spend a greater proportion of their incomes on these essentials.

The timing here is significant.

The Budget will be delivered just as we will learn what’s happening to the energy price cap for the coldest time of year from January.

People on means-tested benefits and lots of pensioners will also be receiving their Warm Home Discount or Winter Fuel Payment around that time.

But the choices the chancellor makes on 26 November on whether to extend or withdraw other direct financial support will be keenly watched.

Uncertainty remains over what Reeves will decidepublished at 09:57 BST 3 September

09:57 BST 3 September

Michael Race
Business and economics reporter

The Chancellor has instructed the government’s independent forecaster, the Office for Budget Responsibility (OBR), to begin the 10-week process of assessing the Treasury’s plans and producing a new economic forecast.

Essentially, the OBR’s job is to mark the government’s Budget homework and see if the sums add up.

The role of the OBR and its judgements is seen as a key player in keeping financial markets – which the UK government borrows money from – onside.

If investors lose confidence in the UK economy, they can demand higher returns for loans, pushing government borrowing costs up.

However, given the date of the Budget being late November, a lot of uncertainty remains over what Reeves will decide – and if the finance and business world want to avoid one thing, it’s uncertainty.

Our team of correspondents are on deck to answer all your questions about the upcoming autumn Budget, which will be delivered by the chancellor on 26 November.

Do you want to know how it could affect you? Have questions on what this all means?

You can get in touch in the following ways: 

• Email: bbcyourvoice@bbc.co.uk , external
• WhatsApp: +44 7756 165803   , external
• Use this form  

Please read our terms & conditions and privacy policy.

In some cases a selection of your comments and questions will be published, displaying your name and location as you provide it unless you state otherwise. Your contact details will never be published.  

Chancellor faces tough political decisions with little room for manoeuvrepublished at 09:43 BST 3 September

09:43 BST 3 September

Faisal Islam
Economics editor

The chancellor’s notification to the Commons and the Office for Budget Responsibility (OBR) sets off a two and a half month process that seems inevitably to lead to some forms of tax rise.

The scope and target of these rises is still up for grabs and will depend on the forecasts.

But the limited room for manoeuvre ahead of Rachel Reeves’s second Budget will mean some tough political decisions and trade-offs.

Perhaps that is why the Budget date is at the later end of expectations, though still in keeping with previous timing of these events.

It will do little to quickly clear up some of the uncertainties that have already impacted markets, for example bank shares and in the property market.

But going a little longer may offer some scope to persuade the OBR of some of the growth-enhancing impact of economic reforms, and for febrile global bond markets to settle.

No easy options for government as Budget loomspublished at 09:34 BST 3 September

09:34 BST 3 September

Henry Zeffman
Chief political correspondent

Even before the cost of government borrowing reached a 27-year high yesterday, ministers were already braced for the likelihood of having to find tens of billions of pounds in spending cuts or tax rises.

The government’s welfare ructions earlier this year demonstrated the extreme difficulty of getting further spending cuts past Labour MPs. So tax rises are the widespread expectation in Westminster.

But how to do so without breaching the Labour Party’s pre-election commitments not to increase income tax, national insurance or VAT? And how to do so without compounding concerns in the financial markets about economic growth, meaning the cost of government borrowing rises still further?

There are no easy options here. And now we know precisely how long the government has to work out what to do.

Each year, the chancellor - who is in charge of the government's finances - makes a Budget statement to MPs in the House of Commons, external.

It outlines the government's plans for raising or lowering taxes. It also includes big decisions about spending on things like health, schools, police and other public services.

A report will be published by the Treasury alongside the Budget, which sets out further details about the measures and what they will cost.

The independent Office for Budget Responsibility (OBR) - which monitors government spending - will also assess the plans.

This Budget is shaping up to be massively significantpublished at 09:31 BST 3 September

09:31 BST 3 SeptemberBreaking

Henry Zeffman
Chief political correspondent

Any Budget is a big deal. But this one is shaping up to be massively significant: as ever, for the British public, but also for the political fortunes of this government.

Certainly, the choices facing Rachel Reeves and Keir Starmer, who has a newly beefed squad of economic advisers, are gloomy.

The Treasury's announced that the Budget will be delivered on 26 November.

The Budget, delivered by the chancellor of the exchequer, outlines the government's plans for raising or lowering taxes and sets out its spending commitments for health, schools, police and other public services.

Our team of political correspondents and writers are here to bring you the latest reaction to this announcement - stay with us.