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Britain needs a fiscally responsible budget, says £2.4bn listed retail landlord
Words by Allan Lockhart
The 26 November budget is not just another fiscal event: it is a defining moment for the UK’s economic future.
The decisions taken by chancellor Rachel Reeves will shape the trajectory of our economy for the next decade and beyond. The stakes could not be higher.
The government has inherited a deeply challenging fiscal landscape. Public debt is elevated, the deficit remains stubbornly high, and the UK economy is stuck in a low-growth, low-productivity rut. The mood across the country is one of quiet pessimism reminiscent of the 1970s. Expectations are low, and confidence is fragile.
What’s particularly troubling is the generational imbalance that has taken root. Older generations – many of whom have benefited from rising asset prices and generous pension arrangements – are faring relatively well.
Meanwhile, younger people face a toxic mix of high housing costs, stagnant wages, and limited opportunities. This is not the hallmark of a dynamic, forward-looking economy. It is a warning sign.
The cultural echoes of the 1970s are hard to ignore. Pink Floyd’s song Money captured the mood of that era with biting clarity. The lyric “I’m alright, Jack, keep your hands off my stack” could just as easily describe today’s fractured social contract.
But if we are to build a stronger, fairer economy, we must reject that mindset. We all have a responsibility to play our part for the collective good of the UK.
Despite the headwinds, there are reasons to be optimistic. The UK remains one of the most politically stable countries in the G20. Our government debt has a longer average maturity than most, giving us breathing room.
We continue to lead in key sectors such as technology, science, education, and financial services. These are not just bright spots – they are strategic advantages.
But optimism alone is not a strategy. What we need now is a decisive, credible, and forward-looking budget – one that puts the national interest ahead of short-term political calculations.
The primary objective of this budget must be to restore fiscal credibility. That means taking meaningful steps to reduce the deficit and put debt on a sustainable downward path. This will not be easy – it will require tough choices on both taxation and public spending.
Tax rises are inevitable. But they must be carefully designed. The chancellor should avoid measures that fuel inflation or increase the cost burden on businesses.
Instead, the focus should be on broadening the tax base, closing loopholes, and ensuring that the tax system supports investment and innovation.
“What we need now is a decisive, credible, and forward-looking budget”
At the same time, public spending must be brought under control. This does not mean indiscriminate cuts. It means prioritising spending that delivers long-term value on infrastructure, skills, and productivity while being honest about what we can no longer afford.
The combination of tax increases and spending restraint must be of a scale that eliminates any talk of “black holes” in 2026. Let’s be clear: black holes are not just accounting gaps – they are confidence killers. They undermine trust in government, spook the markets, and raise borrowing costs for everyone from households to businesses to the state itself. In fiscal policy, credibility is everything.
If the chancellor delivers a decisive and credible budget, the rewards could be significant.
The bond markets are hungry for signs that governments are serious about tackling sovereign debt. If the UK leads the way, we could see gilt yields fall, bringing down borrowing costs across the economy.
Lower gilt rates would be a win-win-win: good for consumers facing high mortgage costs; good for businesses looking to invest; and good for the government itself as it seeks to manage the cost of servicing the national debt.
This is not just about numbers on a spreadsheet. It’s about restoring confidence in our economy, in our institutions, and in our future.
What we need now is leadership. Leadership that is willing to make difficult decisions. Leadership that puts the long-term health of the economy ahead of short-term political gain. Leadership that recognises that the UK’s future prosperity depends on restoring fiscal discipline and unlocking growth.
This budget is a chance to reset the narrative. To show that the UK is serious about its economic future, and demonstrate that we can be both fiscally responsible and economically ambitious.
We have the tools. We have the talent. What we need is the will.
If the chancellor rises to the occasion, this budget could mark the beginning of a new chapter – one where the UK leads by example, regains the confidence of markets, and lays the foundations for a more dynamic, inclusive, and resilient economy. Let’s hope she takes it.